What is hedging?

CA Foundation · Business Economics · MTP · September 2024
What is hedging?
(A) A. Protection against extreme weather condition
(B) B. Protection against risk related to variation in Price movement in an asset.
(C) C. When exchange rate is unlocked for future supplies of foreign exchange
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Protection against risk related to variation in Price movement in an asset.

Topics: International Trade

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