Question: Hedging risk is a very important topic in recent years. Many banks, companies, and agencies have tried utilizing this strategy to various degrees of success.
Hedging risk is a very important topic in recent years. Many banks, companies, and agencies have tried utilizing this strategy to various degrees of success. For a company to reduce its risk by following hedging strategies, another company must be willing to assume that risk. This is called speculating. Find at least one example of a hedging strategy and explain who the speculator is and what risk they are assuming.
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