Exhibit 9.2 Impact of Hedging on the Expected Cash Flows of the Firm --Hedging reduces risk (variance)but it does not add value (in fact there is a cost) Hedged Unhedged NCF Net Cash Flow(NCF) Expected Value,E(V) Hedging reduces the variability of expected cash flows about the mean of the distribution. This reduction of distribution variance is a reduction of risk.Exhibit 9.2 Impact of Hedging on the Expected Cash Flows of the Firm --Hedging reduces risk (variance) but it does not add value (in fact there is a cost)