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What is hedging? (a) Reduce to foreign exchange loss (b) reduce the operational risk

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Question added by Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC
Date Posted: 2015/04/19
bader shahin
by bader shahin , credit manager , aramex

hedge is a strategy used to protect an investment against  loss.

 

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

Both (a) Reduce to foreign exchange loss and to (b) reduce the operational risk.

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is b) Reduce the operational risk

Talal Tashfeen Qayyum
by Talal Tashfeen Qayyum , Country Credit Controller , Thomson Reuters

Hedging is used for both A and B.

Abdul Majid Khatri
by Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb Logistics Pvt. Ltd.

Hedging is used to reduce foreign exchange loss.

Muhammad Rizwan
by Muhammad Rizwan , Accountant , Howdy Restaurant

Hedging can be used to reduce any kind of exchange risk not only currency, e.g future price increase/decrease of any comodity.

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

(b) reduce the operational risk

Zeeshan Ali CA ACCA CIPFA
by Zeeshan Ali CA ACCA CIPFA , Tax Manager , INSPIRE MS TAX CONSULATANCY

it effect only on currency exchange risks

asma patel
by asma patel , Senior Sales Assistant , blackburn lancashire

Totally random question but for some reason I am not getting a confirmation email to activate my Bayt.com can someone help

Deleted user
by Deleted user

this means reducing the optional risk.

Basharat Rasool Mirza
by Basharat Rasool Mirza , Accountant , Suhail Al Mazroui Trading Co. L.L.c.
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