•April 15, 2001
–Sell 5 January, 2002 NYMEX natural gas contracts @ $4.00/MMBtu
•December 15, 2001
–Buy 5 January, 2002 NYMEX natural gas contracts @ $8.00/MMBtu
–Sell 50,000 MMBtu of natural gas for $8.00/MMBtu
1st Example of Short Hedge