Difference between revisions of "Natural hedge"
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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
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.