A Hedge Is

question 237

Multiple Choice

A hedge is

• A) a financial strategy that reduces the change of suffering losses arising from foreign exchange risk.
• B) an exchange rate arrangement in which a country pegs the value of its currency to the exchange value.
• C) the possibility that changes in the value of a nation's currency will result in variations in the market value of assets.
• D) active management of a floating exchange rate on the part of a country's government.

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Definitions:

Federal Statute

A law enacted by the national government that applies across the entire country.

Consolidations

Consolidations refer to the process of uniting multiple parts or entities into a single, more comprehensive system or organization, often seen in financial contexts, like merging companies.

Statutes

Written laws enacted by a legislative body at the federal, state, or local level.

Appraisal Right

A shareholder's right to have their shares independently valued in certain circumstances, such as mergers or acquisitions.