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The
purpose of this introductory hedge brochure is to serve as a
basic, step-by-step guide to the lumber producers to reduce
the risk of holding or acquiring inventory through taking an
equal and opposite position in the Random Length Lumber
futures markets. |
This
introductory leaflet provides information on Random Length
Lumber Futures and Options. Included are CME contract
specifications for both instruments.
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This
brochure is an introduction to the mechanics of options
trading and basic lumber option hedging strategies. Options on
lumber futures are a tool both hedgers and traders use to
manage the inherent price risk of the Random Length Lumber
futures. |