Which of the following statements about hedging is (are) true? I. Hedg
Which of the following statements about hedging is (are) true? I. Hedging is a form of risk transfer. II. Hedging is used to address the risk of unfavorable price fluctuations.
A) I only
B) II only
C) both I and II
D) neither I nor II
ANSWER
Answer: C
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