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Hedging and hedgin risks

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What is fuel hedging and what are the alternative techniques for hedging risk?

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Solution Summary

This solution describes what is fuel hedging and the alternatives techniques to avert risks.

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Hedging is the practice of purchasing fuel often employed by airline companies, of making advance purchases of fuel at a fixed price for future delivery to protect against the shock of anticipated rises in price.

Hedging means reducing or controlling risk. This is done ...

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