Hedging is designed primarily to reduce a ﬁrm's:

Name: Hedging is designed primarily to reduce a ﬁrm's:
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Hedging is a risk management strategy employed by companies to reduce their exposure to price or rate changes. By using products such as futures contracts, options, or forwards, companies can lock in prices and safeguard against unfavorable price movements. This allows them to ensure a consistent profit margin and protect against potential losses.

Hedging Is Designed Primarily to Reduce a ﬁRm's