Question: Hi tutor how to do th is problem? thank you :) a) Using examples drawn from business and/or finance, distinguish between speculation and hedging. Speculation

Hi tutor

how to do th is problem?

thank you :)

a) Using examples drawn from business and/or finance, distinguish between speculation and hedging.

Speculation involves deliberately taking a risk, in pursuit of profit (2 - 1 if unclear) Up to 3 marks for a clearly and fully explained and correct example, drawn from finance. Please use your discretion if the explanation is not full or clear or finance/business-related, to award 2 marks or only 1 mark (3)

Hedging involves taking measures to reduce or eliminate exposure to risk (2 - 1 if unclear) Up to 3 marks for a clearly and fully explained and correct example, drawn from finance. Please use your discretion if the explanation is not full or clear or finance/business-related, to award 2 marks or only 1 mark (3)

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