Options are a sophisticated financial instrument that is why even if we try to explain what options are in simple terms, it would be quite difficult to understand it anyway. Especially when it comes to options hedging.
Hedging currency, bank, price and credit risks – what is it and what is it for? Internet is full of articles about hedging, but they are either too mind-bending or too light-minded. We wrote this article to explore the topic in full and in clear words.