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Kilauea; mount etna; mount yasur; mount nyiragongo and nyamuragira; piton de la fournaise; erta ale. In finance, a foreign exchange option (commonly shortened to just fx option or currency option) is a derivative financial instrument that gives the right but not the. A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. in simple language, a hedge is used to.