In Derivatives, How Does the Concept of ‘Hedging’ Resemble the Use of a Public Key to Secure a Position?

Hedging involves taking an offsetting position to reduce risk exposure, such as buying a Put option to protect a long stock position. The public key is used to receive funds securely and verify a transaction's authenticity.

Both concepts involve a mechanism to protect or secure an asset or position. The public key secures the asset from unauthorized spending, and hedging secures the asset from adverse price movements.