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K2 or LIL will give you the full answer.
However from my limited knowledge I'll have a go.
A hegde is like an insurance. You can hedge against currencies, stocks and commodoties. You can make a large amount of money, out of a small investment if the price moves significantly the way that you expect it to go. These types of investments are usually options and futures.
If the price does not move the way that you want it to, then you will lose everything that you put in.
There is also a time limit, which is why they mention the expiry.
Some time ago Airbus entered in to a deal to sell planes in $$$, so now that the dollar is low their sales are worth less when they convert to the currencies where their costs are (Euro).
Incase things really bad (or to reduce their losses) they will have taken a hedge on the euro against the dollar, so that if the value of their sales fell, they would make a profit on the hedge (future market),i.e. HEDGING their bets.
Hope that makes sense and that I got some of it right. Marks out of 10 for me Kevin?
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