Hedging is the use of derivatives like futures and options to reduce or eliminate financial exposure before delving further into hedging its imperative to understand the following points a long position long exposure in a security eg a stock or bond means the holder of the position owns the security and will make a profit if the price of the security goes up. There are over 450 questions and problems and solutions to these are in a book options futures other derivatives solutions manual which is published by prentice hall there are about 80 assignment questions solutions to these are available only in the instructors manual from the back cover. Options futures and other derivatives by john c hull bridges the gap between theory and practice by providing a current look at the industry a careful balance of mathematical sophistication and an outstanding ancillary package that makes it accessible to a wide audience through its coverage of important topics such as the securitisation . Options futures and other derivatives by john c hull bridges the gap between theory and practice by providing a current look at the industry a careful balance of mathematical sophistication and an outstanding ancillary package that makes it accessible to a wide audience through its coverage of important topics such as the securitization and the credit crisis the overnight indexed swap the black scholes merton formulas and the way commodity prices are modeled and commodity