Pacific Airline needs to buy oil to keep the company in operation. You are a bank officer and Pacific

Airline has come to you for advice in risk management. Pacific Airline has an inherent $(1).$

They could hedge this position by $(2).$

A$.(1)$ short position in the oil price ; $(2)$ short oil forward.

B$.(1)$ short position in the oil price ; $(2)$ long oil forward.

C$.(1)$ long position in the oil price ; $(2)$ short oil forward.

D$.(1)$ long position in the oil price ; $(2)$ long oil forward