What Is a Hedge

question 369

Multiple Choice

What is a hedge?

• A) A means by which to reduce a risk
• B) An equal and opposite risk
• C) A riskless transaction
• D) A means of cancelling a deal

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Definitions:

Ordinary Care

The level of caution and attention to duty that a reasonable person would employ in similar circumstances, often relevant in negligence cases.

Bailment

The act of temporarily placing control over, or possession of, personal property by one person into the hands of another, under agreement.

Reasonable Care

A legal standard implying that a person or entity should act with the caution and prudence that a reasonable person would use in similar circumstances.

Conditional Gift

A gift given with specific conditions attached, which must be fulfilled for the gift to be fully transferred to the recipient.