BZ OFFERS/
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PHYSICAL CONTRACTS/
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I set the quality, price, period and payment date.
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I am not the seller, but need space and cash flow.
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I commit my production through a premium, with regard to a reference market.
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I separate the value of the physical market from that of the reference market by selling the futures.
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I commit the base amount because I have noticed an abnormally promising difference between the reference market and physical market prices.
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I commit my production over a certain period and let the market set my price.
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I sell at an objective price over a given period.
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I make the most of a temporary market opportunity as I have a specific request.
DERIVATIVE PRODUCTS/
A derivative product cannot work without a physical contract.
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I must assess any potential market increases.
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I must secure my commitment with a minimum price.
STRUCTURED PRODUCT = PHYSICAL CONTRACT + DERIVATIVE PRODUCT/
A derivative product is always associated with a physical contract, thus creating a structured product.
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