Price's Effect on Financials
|Small price moves have outsized consequences||Commodity prices can interfere with budget goals||Achievable goals are not met; Profit disappointments||Low Impact, even if prices change|
|Certainty and Precision||Defend a set price||Hedges as |
Popular Hedging Tactics
|Swaps (for Fixed Price)||Probabilistic and Adjustment||Call Options |
Should I Hedge?
|Start Immediately!||Yes |
Hedging should be done with a goal in mind; that goal is a combination of hedges that efficiently remove risk and keep your financial goals attainable.
|Do prices vary on the commodities integral to my business?|
|Does price volatility threaten my financial goals?|
|Can my goals be quantified in financial metrics?|
Hedging could be right for you.