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Hedging is purely speculative in nature, where in insurance Actuaries and Finance Managers (with fatty remuneration) do the job of launching new polcies as per market scenario, assessing life expectency of average inhabitants etc on a scientific basis.
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Does real cost of hedging payable with forward contract equal to nominal cost of hedging minus nominal cost of not hedging?
yes
What exactly is the definition of currency hedging?
Currency hedging is also known as foreign exchange hedging. It involves a method used by companies to eliminate risk resulting from foreign exchange transactions.
What is the difference between private and group insurance?
something private only sertent people can be in it, but a group can have all or everybody who wants to be in it.
What is the difference between a producer and Agent?
None. There are several different types of insurance agents. "Producing Agents" are often referred to as Producers, Meaning they generally deal with the public and accept applications for insurance.
What is the difference between mercantile agent delcredere agent broker and factor agent?
An agent (captive) works directly for a single insurance company and is limited only to that company's offerings. A broker represents many insurance companies and can therefor provide you a multitude...
Difference between hedging and speculation?
Hedging involves in reducing risk in order to focus on another subject, while speculating involves taking on risk in order to profit from insight.
What is the difference between motor insurance and marine insurance?
difference of motor and marine insurance
What is the difference between voluntary insurance?
What is the difference between voluntary life insurance and life, ad/d?
State and explain differences between insurance and ledging?
Hedging eliminates the risk of loss by giving up the potential to gain. With insurance you pay a premium to avoid loss and keep the potential to gain.
Concept of hedging?
The concept of hedging is to reduce the risk of financial loss. Hedging originated out of the 19th century commodity markets. A hedge can include stocks, exchange-traded funds, insurance, forward contracts, swaps, and options.
Difference between h03 and h05 home owners insurance?
Difference between h03 and h05 home owners insurance?
What is the difference between a warranty and insurance?
the difference between a warranty and insurance, is a warranty is when you can return it to either get another or to just return it. insurance is when you have coverage over the object or living being.
What is foreign exchange hedging?
hedging is a way to get yourself protected against a big loss. You can even make an analogy of a hedge as having insurance for your trade. With forex hedging, you employ a method of decreasing the amount of loss that you are likely to experience if something bad comes up.
What is hedging?
The verb to hedge can be used to mean avoiding a direct response, or it can mean counterbalancing against a possible loss (e.g. hedging one's bets). The second meaning is applied to investment strategy.Hedging is a process that is used to reduce risk of loss against negative outcomes within the stock market. Hedging is a similar concept to home insurance, where you might protect yourself against negative outcomes by purchasing fire and peril insurance. The only difference with hedging is that you are insuring against market risks and you are never fully compensated for your loss. This occurs when one investment is hedged through the purchase of another investment. Hedging is most useful under the following circumstances:- Those who have commodity investment that are subject to price movements can use hedging as a risk management technique- Hedging helps set a price level for purchase or sale of an asset prior to that transaction occurring- Hedging also makes it possible to experience gains from any upward price fluctuations to protect against downward price movements.
What is the difference between insurer and insurance company?
Nothing
What is the difference between Non Trucking Liability insurance and Bobtail Insurance?
your not covered for damages
What is the difference between a Proposer and the Insured?
the difference between a proposer and the insured is that a proposer is a person or an entity who is seeking insurance and an insuerd is someone or an entity covered by an insurance policy
