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Hedging

Posted By: Bill Riles
Date: Monday, 20 April 2009, at 8:29 p.m.

In Response To: Hedging (Frank_N_Stein)

Two parties can agree to anything in a hedge provided it does not unfairly impact a third party. Alan and Stefan agreed to split the second place money. Had Alan lost in the final they would have gotten the same amount. The hedge did not include consideration associated with Alan winning the final -- which he did. Oftentimes a semifinal hedge may include provisions associated with the outcome of the final -- this one did not.

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