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Hedge as in finance. Please answer my question i really need to finish off my coursework.

2006-10-17 06:44:27 · 5 answers · asked by Anonymous in Business & Finance Other - Business & Finance

5 answers

Incomplete markets might make it difficult to hedge.

Sometimes it is choosing to take on one risk in order to avoid another. For example -- Long-Term Capital got into trouble because they had to take on credit risk in order to hedge FX exposure.

2006-10-17 06:54:33 · answer #1 · answered by Ranto 7 · 0 0

Hedge in finance? I think that you're not nature friendly...
I searched for different types of hedges on Yahoo! until I read your additional details.

2006-10-17 13:52:40 · answer #2 · answered by Anonymous · 0 0

Lack of liquidity, lack of alternative hedges, lack of additional credit.

2006-10-17 14:22:49 · answer #3 · answered by Cheanea 3 · 0 0

sharpen those clippers.

2006-10-17 13:51:42 · answer #4 · answered by a1tommyL 5 · 0 0

excessive leverage
fraud

2006-10-17 15:09:28 · answer #5 · answered by weenafive 2 · 0 0

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