Manage price risk on raw materials (energy, metals, agriculture, etc).
Fixed Swap
A net-cash settled agreement that allows you to exchange your floating price to fixed price or vice versa.
Commodity Option
It gives you a right, but not obligation to secure a fixed commodity price for a specific period. A premium cost is payable upfront. There is no physical delivery.
Zero Cost Structure
A non-physical deliverable contract that gives you price protection with best and worst case known upfront.