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Based on comparative analysis, we first discuss different kinds of Greek letters in terms of Black–Scholes option pricing model, then we show how these Greek letters can be applied to perform hedging and risk management. The relationship between delta, theta, and gamma is also explored in detail.

Energy-based assets are showing increased susceptibility to volatility arising out of geo-political, economic, climate and technological events. Given the economic importance of energy products, their market participants need to be able to access efficient strategies to effectively manage their exposures and reduce price risk. This chapter will outline the key futures-based hedging approaches that have been developed for managing energy price risk and evaluate their effectiveness. A key element of this analysis will be the breadth of assets considered. These include Crude and Refined Oil products, Natural Gas and wholesale Electricity markets. We find significant differences in the hedging effectiveness of the different energy markets. A key finding is that, Natural Gas and particularly Electricity futures are relatively ineffective as a risk management tool when compared with other energy assets.

Agricultural futures markets were the backbone of early futures trading and continue to play a vital role in today's global economy. For more than a century following the founding of the Chicago Board of Trade in 1848, the United States dominated the world's futures markets with agricultural commodities such as wheat, corn, oats, and soybeans. Today, the global agricultural futures markets include not only grains but also livestock such as cattle and hogs; dairy products such as milk, butter, and cheese; “soft” or tropical commodities such as cotton, coffee, sugar, and orange juice; and industrial products such as soybean oil, soybean meal, and lumber.