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You can use futures to hedge.However, in doing so, you may not always be able to achieve a perfect hedge.Give three reasons why this may be the case.
Transfer Payments
Payments made by the government to individuals or other sectors without receiving a good or service in return, such as welfare, social security, and subsidies.
GDP
Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period of time, often used to measure the economic performance of a country.
Real GDP
Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced by an economy in real terms.
Nominal GDP
The gross domestic product measured at current market prices, without adjusting for inflation.
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