- This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
- You must be logged in to reply to this topic.
Instant Poll - Read and post comments:
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Sir, does hedging eliminates the future risk all together or does it kinda balance the risk and reduce it to some level?
It won’t eliminate it as there will always be inefficiencies in the prices of the future/option and the price of the item we are hedging. It does remove a lot of the risk though.