Valero, a gasoline refiner, expects to buy 750,000 barrels of oil in three months, and will use light sweet crude oil (WTI) futures for hedging. One futures contract is for 1,000 barrels. Based on the spot price of oil, the standard deviation of 750,000 barrels is $445,000. The standard deviation of the value of one oil contract is $2,233. The correlation coefficient between changes in oil spot prices and changes in oil futures prices is 0.915. How many contracts should Valero buy or sell in order to hedge its exposure? (round to the nearest barrel)

a. buy 101 contracts

b. sell 101 contracts

c. buy 182 contracts

d. sell 182 contracts

e. buy 154 contracts

f. sell 154 contracts