Hedging is a way to:
A)ensure lowest price.
B)try to minimize price and currency exchange risks.
C)minimize collusive bidding.
D)set trade discounts.
E)evaluate quantity discounts.

Question

Quizplus · Accepted Answer

Hedging is a risk management strategy used to minimize price and currency exchange risks. By taking a position in the market that offsets potential losses in another position, hedging can minimize the impact of market fluctuations on a company's bottom line. It is commonly used in international trade to protect against fluctuations in foreign currency exchange rates.

Hedging Is a Way To