04. What is the cattle feeder's basis risk? Write down the formula for calculating basis risk using CP and FP risks. Calculate the basis risk according to the formula using the data in the spreadsheet (show your calculation both in the spreud sheet and below). Is there any difference between calculating basis risk directly from basis data and using CP and FP data? (8 points) Q5. What is your anticipated hedging efficiency? Write down the formula for calculating hedging efficiency (HE) and calculate the hedging efficiency using the data in the spreadsheet (show your calculation in the spread sheet as well). Would you hedge based on the calculated hedging efficiency? (6 points) 06. If you want to fully hedge your expected cash position, how many futures contracts should you use in hedging? Write down the formula for calculating the full number of futures contracts and calculate the number. (6 points) 04. What is the cattle feeder's basis risk? Write down the formula for calculating basis risk using CP and FP risks. Calculate the basis risk according to the formula using the data in the spreadsheet (show your calculation both in the spreud sheet and below). Is there any difference between calculating basis risk directly from basis data and using CP and FP data? (8 points) Q5. What is your anticipated hedging efficiency? Write down the formula for calculating hedging efficiency (HE) and calculate the hedging efficiency using the data in the spreadsheet (show your calculation in the spread sheet as well). Would you hedge based on the calculated hedging efficiency? (6 points) 06. If you want to fully hedge your expected cash position, how many futures contracts should you use in hedging? Write down the formula for calculating the full number of futures contracts and calculate the number. (6 points)