Examlex
Hedging consists of:
Price Stability
A situation in which prices in the economy do not change much over time, reducing uncertainty for consumers and producers, and is often a goal of central banks.
Convertible Bonds
Debt securities that offer the holder the right to exchange them for a fixed number of shares of the issuing company, usually at a specified time.
Naked Put
An options strategy where the investor sells put options without holding the underlying security, exposing them to potentially unlimited losses.
Expected Dollar Profit
The forecasted amount of money that an investment is likely to earn in dollars.
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