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EBF 301
Global Finance for the Earth, Energy, and Materials Industries

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Lesson 7 - Basic Energy Risk “Hedging” using Financial Derivatives

Lesson 7 Introduction
Reading Assignment: Lesson 7
Reducing Commodity Risk
Simple Hedging
Perfect Hedge
Imperfect Hedge
More on Hedging
Summary and Final Tasks

‹ Summary and Final Tasks up Lesson 7 Introduction ›

EBF 301:Global Finance for the Earth, Energy, and Materials Industries

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Lessons

Lesson 1 - The Energy Industry – Overall Perspective
Lesson 2 - Supply/Demand Fundamentals for Natural Gas & Crude Oil
Lesson 3 - The New York Mercantile Exchange (NYMEX) & Energy Contracts
Lesson 4 - Cash Market Pricing Methodologies & Publications
Lesson 5 - Crude Oil Logistics & Value Chain
Lesson 6 - Natural Gas Logistics & Value Chain/US LNG Exports & Global Markets
Lesson 7 - Basic Energy Risk “Hedging” using Financial Derivatives
Lesson 8 - Quantitative Methods and Energy Risk Management
Lesson 9 - Technical Analysis
Lesson 10 - Advanced Financial Derivatives - Swaps, Spreads, and Options
Lesson 11 - Risk Controls in Energy Commodity Trading
Lesson 12: Risk Management in the Electricity Market

Author: Farid Tayari, Instructor and Tom Seng, Consultant, John and Willie Leone Family Department of Energy and Mineral Engineering, College of Earth and Mineral Sciences, The Pennsylvania State University.

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