[blank] is a strategy designed to minimise exposure to unwanted risk by taking a position in one market that offsets exposure to price fluctuations in an opposite position in another market.

Question

Quizplus · Accepted Answer

Hedging is the strategy designed to reduce exposure to unwanted risk by taking a position in one market that offsets exposure to price fluctuations in an opposite position in another market. Forward contracts, spot contracts, and insurance are not necessarily designed for this purpose.

[Blank] Is a Strategy Designed to Minimise Exposure to Unwanted