A Firm Wants to Hedge a Potential Transaction but Is

question 34

Multiple Choice

A firm wants to hedge a potential transaction but is also concerned about a possibility that it may not take place. In this case it is better to hedge potential risks using ________.

• A) options
• B) forwards
• C) futures
• D) none of the above

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Definitions:

Pipeline Positions

Key roles within an organization for which successors are prepared in advance.

Senior Management Team

A group of high-level executives responsible for making strategic decisions that dictate a company's direction and overall management.

HR Planning

The process of forecasting an organization's future human resource needs and developing strategies to fulfill those needs.

Internal Employee Movement

The transfer or promotion of employees within an organization, often as part of career development or succession planning strategies.