help on all please

1. The price of an American option that is fairly priced will be closest to its intrinsic value a. When it is deeply out of the money b. When it deeply in the money c. When it is farthest from its expiration date d. When it is about the expire 2. Over the summer of 2020, you sold contracts to supply heating oil to homes in California during the winter. You locked in a fixed price that the homeowners pay for their oil through March 2021. You won't buy the oil until the winter of 2020, however, when you can assess demand. If you want to hedge your exposure, you would: a. Short heating oil futures b. Go long heating oil futures C. Avoid futures because they speculative tools only and cannot be used to hedge 3. Buying an call option on a stock is less risky than buying a share of the same stock when: a. The option is deeply out of the money b. The options is at the money C. The market is less volatile than normal d. Never: Buying an option is always riskier than buying a stock