(c) The delivery of the underlying oil can be made any day during the delivery month.

(c) The delivery of the underlying oil can be made any day during the delivery month. If you are in a short position and you are scheduled to deliver the oil, should you deliver as early as possible or as late as possible? Briefly explain.

(d) Suppose that you are a manager of a utility firm and you are very concerned about oil price increase before January. What position (short or long) should you take in oil futures to hedge this risk?

(e) Suppose again you are the manager described in (d), how would you use call options on oil as insurance for potential price increase? Be sure to mention whether you should take long or short position.