Whether they are traded for purposes of hedging or speculating, options on futures can be versatile investment tools. When buying options, the risk involved can be limited to the amount paid up-front for the option. As a result, options can be used as a hedging vehicle. They can be used to protect against adverse price moves in commodity, interest rate, foreign exchange, and equity markets. Options on futures are used today by corporate treasurers, bankers, farmers, and equity portfolio managers throughout the world. This booklet will introduce you to the basic terms and strategic uses of options on futures. 

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