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

If you choose not to protect prices in any way, you are speculating by default.
Are you prepared for the consequences involved with speculation?

We feel it is important to address this issue up front in running your business.

When considering whether to enter into a hedge position, you might ask
yourself questions such as:

• Do you like the current price?
• Do you think it will stay at these levels?

Futures allow you to “fix” a price for a specific period of time.