[ 10 MARK QUESTION, Answer appropriately ]

( Note - Answer should be clear, concise, easy to understand at the same time all important points should be present. Answer should be worth getting 10 marks in Exams. eg - 10 important points = 10 marks)

{ This question is exactly from the subject, " Derivatives Management " }

QUESTION -

What do you meant by short hedge and long hedge? How is it helpful.