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They are also the basis of derivative markets futures contracts, options, and combinations of these and other financial instruments which can be far larger.
Barrick, which has the highest market value of any gold mining company, has been the leading voice on the more cautious pro-hedging side, arguing that forward sales contracts, options and other techniques protect the company's future profits in the face of an uncertain gold price.
The funds accomplish this not by putting money into stocks, but by investing principally in futures contracts, options contracts, swaps and other financial instruments and by engaging in short sales -- in other words, the same instruments and techniques that many institutional investors use to hedge their portfolios.
The first reason is the fact that, unlike forward contracts, options themselves allow the producer to postpone its selling decisions.
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Verizon, too, offers no-contract options.
Declined contract options on RHP Bob Wells and INF Denny Hocking.
UTAH JAZZ -- Exercised the 2005-06 coptions ontions on G Raul Lopez and C Curtis Borchardt.
National League METS--Declined the 2006 contract options on LHP Felix Heredia and LHP Kazuhisa Ishii.
SEATTLE MARINERS--Declined the 2006 contract options on RHP Shigetoshi Hasegawa and SS Pokey Reese.
Team and player contract options will be prohibited in new contracts, other than rookie deals.
Three contract options were considered, depending on the extent of outsourced maintenance activities.
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