This CD is approximately 3 hours in length.

Lesson 3.1 "Introduction to Commodity Swaps" In this lesson, you will learn: 1) What commodity swaps are and why they are important; 2) How buyers and sellers can use fixed-for-floating commodity swaps to hedge price risk; 3) What exchange-indexed, locational basis and index swaps are; 4) How exchange-indexed commodity swaps can mimic a futures hedge; 5) The advantages and disadvantages of hedging with commodity swaps versus hedging with futures contracts; and 6( Common strategic and tactical uses for commodity swaps.

Lesson 3.2 "The Over-the-Counter Energy Market" In this lesson, you will learn: 1) What the over-the-counter market is, and how it operates; 2) The detailed mechanics behind how an over-the-counter dealer makes a market for a fixed-for-floating commodity swap; 3) The various factors that determine a dealer's bid/offer spread; 4) What an institutional energy broker is, how they execute transactions; 5) What "sleeving" is; 6) The difference between electronic brokers, electronic exchanges and electronic market-makers; and 7) How electronic energy exchanges operate.

Lesson 3.3 "Hedging Basis & Delivery Risk" In this lesson, you will learn: 1) The difference between the financial and physical locational basis ("fin" & "phys"); 2) Why sophisticated hedgers manage locational basis risk and underlying futures price risk as separate components; 3) What the "premium for firm delivery" is, and how it effects physical commodity prices; 4) How to hedge locational basis risk and delivery risk; and 5) What physical basis contracts and trigger deals are, and why they are so popular.