Sometimes there is no futures contract with the exact settlement $($or delivery$)$ date required for the hedge. What should we do$?$

Group of answer choices

Select the futures contract with a delivery month that is as close as possible to$,$ but earlier than, the end of the life of the hedge.

Select the futures contract with a delivery month that is as close as possible to$,$ but later than, the end of the life of the hedge.