In early $2022,$ geopolitical tensions escalated as Russia invaded Ukraine, leading to widespread international sanctions against Russia, including its energy sector. Russia, being one of the largest producers of oil globally, saw its oil exports severely impacted. This situation created significant volatility in global oil markets, affecting oil producers worldwide who were exposed to fluctuating prices. A Rusian$-$based company, GlobalPetrol Corp a medium$-$sized oil producer has its operations primarily in the North Sea and produces $100,000$ barrels of oil per month. Due to the ongoing conflict and subsequent sanctions on Russia, oil prices are highly volatile, creating financial risk for GlobalPetrol Corp., which sells its oil on the global market. The company fears a potential drop in oil prices could significantly impact its revenue.

Briefly describe the following financial instruments for hedging and their benefits for GlobalPetrol Corp on the price of oil.

i$.$Short$-$forward position $(3$ marks$)(50$ words max$)$

II$.$ Long put option $(3$ marks$)(50$ words max$)$

III. Futures contract hold for delivery $($sell$)(3$ marks$)(50$ words max$)$