Corporate Finance question in the attached image $($#$1)$

1) Spirit Airlines, Inc. (NASDAQ: SAVE) is an ultra low-cost carrier headquartered in Miami and operating scheduled flights to destinations in the US, Bahamas, Caribbean, and Latin America. Spirit's fuel prices are highly correlated with the economy. Fuel prices rise in booms and fall in recessions. A) B) C) D) Recommend a derivative transaction that Spirit Airlines could use if it wanted to reduce the volatility of its fuel costs. If Spirit Airlines enters into the derivative transaction you described in A), would their rise or fall? Otal Assets Due to concern about making the lease payments on their airplanes, Spirit Airlines is considering the derivatives transaction you described in A). Prior to making a final decision, their management team researched the derivative positions of their competitors. Why is this relevant? While investigating the derivatives transaction you described in A), Spirit's management team learned that oil prices are expected to fall over the next year. Should they wait for oil prices to fall before entering the contract?