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Which of the Following Statements Holds True for Hedging

Question 37

Multiple Choice

Which of the following statements holds true for hedging?


A) It refers to using financial instruments to reduce adverse price movements by taking an offsetting position.
B) It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
C) It refers to a strategy that ensures that a change in interest rates does not affect the value of a portfolio.
D) It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
E) It refers to the method of bringing all financial statements of a parent and its subsidiaries into a single financial statement.

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