The cash position of a merchant is 10000 bushels of wheat , the variance of the changes of forward price is 0.00094, the

[answerhappygod]

The cash position of a merchant is 10000 bushels of wheat , the
variance of the changes of forward price is 0.00094, the variance
of the changes of the base is 0.000453, the variance of the cash
price changes is 0.000805 and the covariance of the changes of
forward price with the changes of the cash prices is 0.000518.
Calculate the efficiency of the hedge and choose one of the
following answers.
a. 0.97
b. 0.31
c. 0.69
d. 0.03