Difference between revisions of "Natural hedge"

From CNM Wiki
Jump to: navigation, search
(Created page with "Natural hedge is a transaction between two counterparties where both parties' risks are reduced. ==Definitions== According to Financial Management Theory and Practice...")
 
(Definitions)
 
Line 5: Line 5:
 
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
:[[Natural hedge]]. A transaction between two counterparties where both parties' risks are reduced.
 
:[[Natural hedge]]. A transaction between two counterparties where both parties' risks are reduced.
 +
According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
 +
:[[Natural hedge]]s. Situations in which aggregate risk can be reduced by derivatives transactions between two parties known as counterparties.
  
 
==Related concepts==
 
==Related concepts==

Latest revision as of 00:52, 2 November 2019

Natural hedge is a transaction between two counterparties where both parties' risks are reduced.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Natural hedge. A transaction between two counterparties where both parties' risks are reduced.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Natural hedges. Situations in which aggregate risk can be reduced by derivatives transactions between two parties known as counterparties.

Related concepts

Related lectures