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    Question

    Hedging is the main feature

    of:
    A only cash market Correct Answer Incorrect Answer
    B only forward markets Correct Answer Incorrect Answer
    C Both cash market and forward market Correct Answer Incorrect Answer
    D Backward market Correct Answer Incorrect Answer

    Solution

    Hedging is a risk management strategy employed to offset losses in investments by taking an opposite position in a related asset. A forward market is a marketplace that offers financial instruments that are priced in advance for future delivery.

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