. Explain how you can hedge your position using gasoline futures contracts. b. In calculating your hedge ratio, how must you account for the different valuation pro cedures used for forward and futures contracts? That is, what difference does it make that forward contracts are valued on a discounted basis while futures contracts are marked to market without discounting? c. If the only available gasoline futures contracts call for the delivery of 42,000 gallons and mature in either two or four months, describe the nature of the basis risk in volved in your hedge