Hedging Is the Use of

question 24

Multiple Choice

Hedging is the use of

• A) derivatives or other instruments to increase returns.
• B) derivatives or other instruments to offset risks.
• C) debt to offset risks.
• D) forward contracts.

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Definitions:

First Impression

The initial judgment or assessment of something or someone, formed on first encountering them, often considered to be lasting and significant.

Legal Authorities

Sources of law, such as statutes, cases, or regulations, that have the power to bind or guide legal proceedings.

Government Policy

A course of action or a set of decisions adopted by a government or a political entity to influence or guide a wide range of activities and behaviors.

Equitable Remedy

A form of legal relief sought in a lawsuit that requires a party to act or refrain from acting, rather than merely paying damages.