Based on the Minimum Variance Hedge Ratio Approach,what Is the Optimal

Multiple Choice

Based on the minimum variance hedge ratio approach,what is the optimal number of futures contracts to deploy,given the following information.The correlation coefficient between changes in the underlying instrument's price and changes in the futures contract price is 0.95,the standard deviation of the changes in the underlying position's value is 300%,and the standard deviation of the changes in the futures contract's price is 11.4%.

A) long 35 futures contracts
B) long 25 futures contracts
C) long 15 futures contracts
D) short 25 futures contracts
E) short 15 futures contracts