On May 15, Pacific Airlines anticipates purchasing 28,000,000 gallons of jet fuel on the spot market on September 15. The airline is concerned about jet fuel price volatility during the intervening period (between May 15 and September 15) and wants to hedge its risk exposure by using heating oil futures contracts.

a. The heating oil futures are traded with the nearest delivery months of July, October, and December. Trading on the contracts ends on the second business day of the delivery month. What position should Pacific Airlines take in the futures market on May 15 in order to hedge its risk exposure to the jet fuel prices? Indicate both the type of the position (long vs. short) and the appropriate contract month.