Please explain thanks~

1.On March 1 the price of oil is $20 and the July futures price is $19. On June l the price of oil is $24 and the July futures price is $23.50. A company entered into futures contracts on March 1 to hedge the purchase of oil on June 1. It closed out its position on June 1.

a. What kind of hedge should it be? b. What is the effective price paid by the company for the oil? c. What is the basis risk? d. What would be the ideal price if the basis risk were zero? 2. On March 1 the price of gold is $300 and the December futures price is $315. On November 1 the price of gold is $280 and the December futures price is $281. A gold producer entered into a December futures contracts on March 1 to hedge the sale of gold on November 1. It closed out its position on November 1. What is the effective price received by the producer for the gold? a. What kind of hedge should it be? b. What is the effective price received by the producer for the gold? c. What is the basis risk? d. What would be the ideal price if the basis risk were zero?