What is the point of hedging (as a broader concept) and how is that different...

90.2K

Verified Solution

Question

Finance

What is the point of hedging (as a broader concept) and how is that different from diversification?

- What is the point of qualifying for hedge accounting, and what do you have to do to qualify? Though the rules of hedge accounting may be different based on what you are hedging against (fair value vs. cash flow), what is the overall purpose of qualifying for hedge "accounting"?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students