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Unanswered Question 2 You Answered 0/1 pts UAL fears that oil prices will go up. Considering below information, what is the optimal hedge ratio?

Unanswered Question 2 You Answered 0/1 pts UAL fears that oil prices will go up. Considering below information, what is the optimal hedge ratio? Correlation between oil spot and future 0.93 prices Standard deviation of oil futures 3 Standard deviation of oil spot prices 7 Oil futures contract size 42,000 gallons Gallons needed by UAL 9,624,077 gallons Please state your answer as decimal (i.e. 0.05 and not 5%). Round to the nearest three decimals. Correct Answer 2.17 margin of error +/- 2%

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