What is a natural hedge


Assignment:

Q1. What is the difference between direct and indirect claims?

Q2. How did derivatives begin?

Q3. What is a natural hedge? Give some examples of natural hedges.

Q4. What is the difference between using derivatives for hedging as opposed to speculation?

Q5. Why are derivatives better than direct claims for speculation?

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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