Locking in the price of diesel

[David Brady]

That's correct, it's all in the Prospectus. I might add that one needs

to be aware of liquidity factors also; i.e., what's the typical daily

volume of UGA.



Basically these methods come down to hedging against higher future

prices. There are other investment vehicles available to achieve these

ends.



David Brady

'02 LXi, NC



hippieforever3 wrote:

What you may be neglecting is that all of these commodity options
have

a "time value". You are paying a premium for the assurance that your

price will be predictable over some period. (There is no free lunch.)



Right now with the tremendous volatility in oil and gas prices I KNOW

the time premiums are a relatively high percentage of the contract

price.



I'm not saying this won't work out for you but just cautioning you to

anticipate and account for this time value premium. A reasonable guess

is that fuel prices would have to go up 15-20% to make this even

marginally worthwhile and 40-50% to make it worth the trouble.



Now if you were planning a 20 bird caravan and paying for all the

diesel, it would be a different matter.



Regards,

GPSGary

84FC35

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