Risk Outline

SECTION ONE - Key Concepts to Understanding Risk
What is Risk?
Why Manage Risk?
The Concept of Hedging

SECTION TWO - Risk Management in Practice
Risk Management Product Summary
Forwards and Futures Contracts
** The NYMEX Futures Market
** Natural Gas Futures
** Terminology in the Futures Market
** Futures Exercises
** Differences between Forwards & Futures
Basis
Exchange For Physicals (EFPs)
Triggers

SECTION THREE - Options, Caps, Floors & Collars
Options
** Physical Options
** NYMEX Options
** Embedded Options
** Option Exercises
Caps, Floors and Collars

SECTION FOUR - Swaps
Swaps
** Fixed-Float Index Swap
** NYMEX Swap
** Basis Swap
** Gas Daily Swap
** Cross Commodity Swap
** Spark Spread Swap

SECTION FIVE – Class Exercise

WRAP UP & QUESTIONS