Hedging Is the Process of Using Financial Instruments Such as Options

question 36

True/False

Hedging is the process of using financial instruments such as options, forwards, futures, and swaps to reduce the financial risks faced by a firm.

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Definitions:

Nonverbal Cues

Communication expressed through body language, facial expressions, gestures, posture, and other physical behaviors rather than words.

Spoken Words

Oral communication or speech, as opposed to written text.

Visual Aids

Materials or tools that assist in enhancing the understanding or retention of information through visual representation.

Nonverbal Communication

The act of transmitting information or expressing emotions to others without speaking, utilizing physical behaviors and expressions instead.