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

The purpose of this Hedging Overview is to discuss an initial set of issues to address when considering using futures and options to protect prices for your business. Some concepts
include why you should protect prices, the decision process itself and some basic differences
in the characteristics of futures and options contracts.

However, we feel strongly that the most important item to take away from this Overview is
that the goal of any price protection program is ensuring your business survives and prospers.
Whether you decide to use futures and options (with us or some other broker), you need to address this issue. Today’s business environment has become too competitive not to.

Contact us today to discuss how we can help you start the process.