Black-Scholes is all tied up with hedging but the two are different (B-S is also not relevant to futures so this is just more David idiocy). B-S provides a technique for valuing options. The derivation of Black-Scholes includes an idea of delta hedging which is about replicating an option by continually trading a portfolio containing risk free assets and the option underlier. Delta hedging is just one kind of hedging. A few points:

a) Nobody can really delta hedge as it involves continuous trading

b) B-S is used all the time when the delta-hedging is impossible

c) B-S is almost never exactly true, in part because delta hedging is impossible.

d) Rules based delta hedging is often used to create synthetic options. This is fraught with danger...

Black-Scholes is a pricing model for all options and futures. When you hedge, you are buying a form of insurance against an existing position to reduce risk.

Use Investopedia and Wiki to define financial terms.

http://www.investopedia.com/terms/h/hedg...

http://en.wikipedia.org/wiki/Black%E2%80...

black scholes is used in options for price volatility