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

At Providio, it is our job to help guide you through the process of using futures and options contracts to protect prices. It is quite possible you are already addressing some of these steps.

We feel strongly this is the process any broker should work through with you in
using futures & options to manage price risk:

1. Duration of hedge
2. Size of exposure needed
3. Timing of implementation
4. Other Implementation criteria
5. Hedge account cash management
6. Hedge position removal criteria
7. Evaluation of results

If desired or needed, your strategy may combine futures and options to protect prices in
different ways. You may want to reduce uncertainty of your transaction: futures. You may
want to devote the necessary capital to purchasing insurance that will allow you to enjoy
windfall profits: options. You may want to combine both.

We will work with you to determine your business’s price protection needs.