Hi David, thank you for the prompt revert.
I am struggling to grasp the concept behind the 2nd point wherein the future spot price is not predetermined.
Is there perhaps a simpler illustration or an alternative example I may refer to?
Apologies for the trouble.
Does this mean the current study material should have said Long hedge position instead of Short position in hedge for the Second point?
Since my initial position is already a short if I take a short position on the hedge. How does it offset my position?
Referring to Page 4 of chapter 8