Q7. Write down the formula for calculating hedge ratio according to the naive and optimal (econometric) methods. Calculate the nave (HR) and optimal (HR*) hedge ratios using the data in the spreadshcct (show your calculation both in the spread sheet and below). (3 x2-6 points) Q8. Write down the formula for calculating the nave number of futures contracts (NFC) using the naive hedge ratio (HRN). Using data in the spreadsheet, calculate the nave number of futures contracts (NFC) needed to hedge the cattle on feed. (6 points) 09. Write down the formula for calculating the optimal number of futures contracts (NFC) using the optimal hedge ratio (HR'). Using data in the spreadshect, calculate the optimal number of futures contracts (NFC) needed to hedge the cattle on feed. (6 points) Q7. Write down the formula for calculating hedge ratio according to the naive and optimal (econometric) methods. Calculate the nave (HR) and optimal (HR*) hedge ratios using the data in the spreadshcct (show your calculation both in the spread sheet and below). (3 x2-6 points) Q8. Write down the formula for calculating the nave number of futures contracts (NFC) using the naive hedge ratio (HRN). Using data in the spreadsheet, calculate the nave number of futures contracts (NFC) needed to hedge the cattle on feed. (6 points) 09. Write down the formula for calculating the optimal number of futures contracts (NFC) using the optimal hedge ratio (HR'). Using data in the spreadshect, calculate the optimal number of futures contracts (NFC) needed to hedge the cattle on feed. (6 points)