Insurance For Hedging
Hedging and insurance are two risk management techniques. Hedging requires the entry of counter party in all the hedging derivatives, whereas in insurance you demand an insurer. Hedging requires that you give the potential prospects of prospect gains where as insurance does not require you to give up the prospects of prospect gains, insurance really minimizes the risks of losses. There is no concept that states insurance for hedging; however, insurance can be used as one of the derivatives of hedging.
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