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The correlation between the daily percentage changes of the spot price and futures price of a commodity is 0.9, and the standard deviations of daily

The correlation between the daily percentage changes of the spot price and futures price of a commodity is 0.9, and the standard deviations of daily percentage changes of the spot price and the futures price are 0.025 and 0.030 respectively. The current spot price and futures price are $10 and $11.25, respectively. Each futures contract represents 1000 units of the commodity. A company needs to sell 50,000 units of the commodity in 1 month, and wants to use the futures contract hedge the price risk. How many futures contracts should the company long or short?

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