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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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