Gday A199
Correct, I don’t understand hedging as well as I would like, my perception of hedging is the its a bit like an insurance policy, fixed at an agreed price e.g. if the price goes higher than the agreed amount then STO ( in this instance ) forgo any $ value higher than the hedged price and if the price is lower than the hedged price the fund manager kicks in and pays the agreed amount to STO using funds that have been leveraged in other areas and that’s why I posed the question regarding the viability of hedge funds given that across the globe there would not be a financial entity that has not been touched by this pandemic
Enjoy the weekend
Cheers
Long Term Future of Santos, page-29
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$6.93 |
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