The hedge ratio is the ratio of derivatives to a spot position (or vice versa) that achieves an objective such as minimizing or eliminating risk. Suppose that the standard deviation of quarterly changes in the price of a commodity is 0.57, the standard deviation of quarterly changes in the price of a futures contract on the commodity is 0.85, and the correlation between the two changes is 0.3876. What is the optimal hedge ratio for a three-month contract? Select one: a 0.1893 b. 0.2135 Oe. 0.2381 d. 0.2599