2nd Edition

Commodity Derivatives A Guide for Future Practitioners

By Paul E. Peterson Copyright 2026
314 Pages 77 B/W Illustrations
by Routledge

314 Pages 77 B/W Illustrations
by Routledge

314 Pages 77 B/W Illustrations
by Routledge

Commodity Derivatives: A Guide for Future Practitioners describes the origins and uses of these important markets. Commodities are often used as inputs in the production of other products, and commodity prices are notoriously volatile. Derivatives include forwards, futures, options, and swaps; all are types of contracts that allow buyers and sellers to establish the price at one time and... Read more

1. Introduction 2. Trading Futures and Options 3. Understanding and Interpreting Futures Prices 4. Futures Pricing 5. Margins, Clearing, Delivery, and Final Settlement 6. Market Regulation 7. Hedging with Futures 8. Hedging and the Basis 9. Futures Hedging Enhancements 10. Profit Margin Hedging and Inverse Hedging 11. Hedging and Basis Trading 12. Basis Trading and Rolling a Hedge 13. Speculating with Futures 14. Introduction to Options on Futures 15. Option Pricing 16. Profit Tables and Profit Diagrams 17. Hedging with Options 18. Option Hedging Enhancements 19. Speculating with Options 20. Commodity Swaps.

Biography

Paul E. Peterson is a Clinical Professor of Finance (Retired) at the University of Illinois at Urbana-Champaign, and was The Clearing Corporation Clinical Professor of Derivatives Trading. He is President of Zebra Economics, Inc., a consulting firm based in Urbana, Illinois.