What is the basic rationale for hedging?
multiple choice are:
to reduce a firm's sensitivity to changes in prices, exchange rates, or interest rates
to increase a firm's profit
to reduce a firm's exposure to a risk
derivatives can be used to hedge
A and B
A and C
A and D
B and C
B and D
C and D
all but A
all but B
all but C
all but D
all are true