Commodity Derivatives

List of figures; List of tables; Preface; CHAPTER 1. INTRODUCTION; What is a Commodity?; What is a Derivative?; CHAPTER 2. TRADING FUTURES AND OPTIONS; Pit Trading; Electronic Trading; CHAPTER 3. UNDERSTANDING AND INTERPRETING FUTURES PRICES; How Futures Prices Are Quoted; Measures of Trading Activity; Interpreting Price Differences: Time, Space, and Form; CHAPTER 4. MARGINS, CLEARING, DELIVERY, AND FINAL SETTLEMENT; Margins in Futures Trading; Margin Account Example; Final Settlement via Delivery; Final Settlement via Cash Settlement; CHAPTER 5. MARKET REGULATION; Futures as Contracts; Contract Specifications; Regulation by Exchanges; Regulation by the Federal Government; Self-Regulation by the Industry; Applications in Other Sectors and Countries; Appendix 5.1; CHAPTER 6. HEDGING WITH FUTURES; The Role of Correlation; Hedging Against a Price Increase; Hedging Against a Price Decrease; More on the Role of Correlation: An Example from the Corn Market; Price Changes vs. Prices Levels: The Importance of Returns; CHAPTER 7. HEDGING AND THE BASIS; Hedging and Basis Changes; Long Hedging and Basis Behavior; Short Hedging and Basis Behavior; CHAPTER 8. HEDGING ENHANCEMENTS; Types of Hedges; Rolling a Hedge; Cross-Hedging; CHAPTER 9. PROFIT MARGIN HEDGING AND INVERSE HEDGING; Profit Margin Hedging; Inverse Hedging; CHAPTER 10. HEDGING AND BASIS TRADING; Redefining the Basis and the Cash Price; Commercial Hedging; CHAPTER 11. BASIS TRADING AND ROLLING A HEDGE; Rolling a Hedge to Capture a Favorable Basis; Spread Impact on Hedging Results; CHAPTER 12. SPECULATION WITH FUTURES; Speculation vs. Investment; Speculative Styles; Commitments of Traders; Speculative Participation in Commodity Futures; CHAPTER 13. INTRODUCTION TO OPTIONS ON FUTURES; How Options Work; Options on Futures; Options on Actuals; CHAPTER 14. OPTION PRICING; The Black Model; Put-Call Parity; Option Sensitivity and the Greeks; Summary; CHAPTER 15. PROFIT TABLES AND PROFIT DIAGRAMS; Futures and Cash Positions: Linear Profits; Options Positions: Nonlinear Profits; Discussion; CHAPTER 16. HEDGING WITH OPTIONS; Option-Based Hedging Strategies; Delta-Neutral Hedging; Synthetic Futures and Options; CHAPTER 17. SPECULATING WITH OPTIONS; Intrinsic Value Strategies; Time Value Strategies; Volatility Strategies; Spread Strategies; CHAPTER 18. COMMODITY SWAPS; Swaps and Forwards; Swap Features and Applications; The Market for Commodity Swaps; Index