Question

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

Q: Price risk is the risk of a decline in the value of a security or a portfolio. How can one transfer

HedgingmeansreducingorcontrollingriskThisisdonebytakingapositioninthefuturesmarketthatisoppositetotheoneinthephysicalmarketwiththeobjectiveofreducingorlimitingrisksassociatedwithpricechanges

security or a portfolio. How can one transfer price risk?

A Arbitrage

B Speculation

C Hedging

D A and C

E All the above

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Question

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

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