📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    âš¡ Azaadi sale - Celebrate Independence Day with Flat 55% Off On all courses! 13 to 17 Aug âš¡ Enroll Now

    Question

    Price risk is the risk of a decline in the value of a

    security or a portfolio. How can one transfer price risk?
    A Hedging Correct Answer Incorrect Answer
    B Speculation Correct Answer Incorrect Answer
    C Arbitrage Correct Answer Incorrect Answer
    D All the above Correct Answer Incorrect Answer

    Solution

    Hedging means reducing or controlling risk. This is done by taking a position in the futures market that is opposite to the one in the physical market with the objective of reducing or limiting risks associated with price changes.

    Practice Next
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call