Hedging Is

Hedging is:

A) Plotting how the value of a firm is affected by changes in prices.
B) An option that gives the owner the right, but not the obligation, to buy an asset at a specific price up to a specific point in time.
C) A financial asset that represents a claim on a different type of asset.
D) Reducing a firm's exposure to rate and price fluctuations.
E) Plotting the potential gains and losses incurred as a consequence of price changes.