PROTECTING PRICES

Purpose: Provide a general overview of the business decisions involved in using Futures
and Options on Futures to protect prices.

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.