1.(10 points) Explain whether the buyers and sellers of oil spot transactions are diligent about the risks faced by the buyers and sellers of stock spot transactions, and explain in detail how the forward contracts for oil can help the buyers and sellers avoid risks, and what is the hedging cost of the forward contracts for oil?

Bond buyers are required to determine the type of risk they are exposed to based on whether they are "held-to-maturity". Please explain how the type of risk that would be exposed to a physical buyer is different from a non-held-to-maturity buyer.