Your farm is expected to produce 1000 tons of organic potatoes next summer. You would like to hedge the risk of uncertain wholesale prices on organic potatoes, but, unfortunately, futures contracts are available only on regular (not organic) potatoes. The expected price of organic potatoes is $400/ton with a standard deviation of $57. The correlation between the price of organic potatoes and the forward price of regular potatoes is 0.5. The farmer optimally decides hedge his risk by selling contracts on 1400 tons of regular potatoes. What is the expected standard deviation of the price of regular potatoes? $16.41 $19.25 O $20.36 $39.90 $49.17 O $62.05 $70.11 cannot be determined