Managing Commodity Price Risk
by George A. Zsidisin, Janet L. Hartley, Barbara Gaudenzi, Lutz Kaufmann
Accuracy, short-term commodity prices, 41–43
Arbitrage, 70–71
Asian calls and puts option, 121–122
Building-in financial slack, 77–78
Call option, 120–121
Calls and puts option, 120–121
Collar approach, 125–126
Collar with knock-in (KI) approach, 126–127
Commodities as collateral, 112–113
Commodity-based financing, 112–113
Commodity price analysis, 8–9
Commodity price fluctuations, 6
Commodity price-risk appetite, 21
Commodity price volatility
creating value from, 6–10
downside of, 5–6
Commodity swap, 123–124
Commodity traders, 33
Correlations, 63–69
Cross-hedging, 84–85
De-escalation clause, 95–98
Demand
basics of, 59–60
factors affecting, 60–63
Direct commodity purchase
building-in financial slack, 77–78
characteristics and approaches, ...
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