Problem
You are approached by an end-user who procures its NG supply from local suppliers in Denver, CO. Being concerned with NG prices for next January, they wonder how they could hedge against likely increases in NG prices, making sure that they can procure their supply at a fixed price. What is your recommendation? Provide details using a numerical example. Your numerical example should reflect your forecast about January prices. Also, you should clearly describe the derivative or the combination of derivatives that you recommend for this purpose.