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The following table gives data on monthly changes in the spot price and the futures price for live cattle in the last ten months. Spot

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The following table gives data on monthly changes in the spot price and the futures price for live cattle in the last ten months. Spot Price Change +0.55 Futures Price Change +0.50 +0.63 +0.67 -0.25 -0.19 -0.39 -0.48 +0.89 +0.65 Spot Price Change +0.08 Futures Price Change -0.03 +0.12 +0.06 +0.75 +0.80 -0.55 -0.59 -0.47 -0.42 Further data analysis shows that the correlation between the futures price changes and the spot price changes is 0.9847. It is now September 18. A meat producer is committed to purchasing 120,000 pounds of live cattle on October 18. The producer wants to use the November live-cattle futures contracts to hedge its risk. Each corfiract is for the delivery of 40,000 pounds of cattle. Please design a strategy for the meat producer to hedge the price risk, what is the optimal hedge ratio

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