TABLE OF CONTENTS:

Protecting Prices

Delivery Prices

Why Protect Prices

Deciding to Protect Yourself

How Can You Deal with Price
Uncertainty Using Futures

What Can Exchange-Traded
Futures Provide

Advantages & Disadvantages of
Hedging Using Futures

How Can You Deal with Opportunity
Loss Using Options on Futures

Advantages & Disadvantages of
Hedging Using Options on Futures

How to Balance Price Uncertainty
with Opportunity Loss

What We Covered & What Your Price Protection Goals Should Foucus On

This is NOT a “how to”: We aim to provide a general framework to use when addressing
your business’ risk management and if Futures and Options will help you run your business
more effectively.

When considering these concepts and ideas, take in to account that market prices are a
function of humans and their emotions.

What may be the logical outcome is not always the real world outcome.