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 do fix your price and it changes favorably, you have foregone potentially
higher profits.
These windfall profits may be a part of your expected revenue stream.

Options serve to protect prices while still allowing you to participate in potential windfall profits.
Protecting with options is much like an insurance policy. You pay a premium for protection.
More protection costs more money.