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Gold/Mining/Energy : Gold Price Monitor
GDXJ 101.44+3.5%4:00 PM EST
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To: gmccon who wrote (22192)10/23/1998 1:33:00 PM
From: butkus  Read Replies (2) of 116756
 
Gmccon-hedging. You buy a house and believe it will go up in value.
You also know that high interest rates will accompany any drop in housing values. So, to protect against possibility that your house might go down in value, you purchase options that allow you to profit if interest rates go up. You have hedged against the drop in the value of your house by purchasing options that allow you to profit on the increase in interest rates that will accompany any drop in the value of the house
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