Hedging is a form of risk insurance that can protect both parties from currency fluctuation.

Name: Hedging is a form of risk insurance that can protect both parties from currency fluctuation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Yes, hedging is a risk management strategy used to mitigate potential losses caused by currency fluctuations. It involves making an investment to offset the risk of a potentially adverse price movement in an asset. Both parties involved in a transaction can use hedging to protect themselves from currency risks.

Hedging Is a Form of Risk Insurance That Can Protect