Some reasons to manage risk by hedging are which of the following?
I.Ability to have needed cash flows.
II.Reduce the chance of financial loss
A)Only statement I is correct
B)Only statement II is correct
C)Both statements I and II are correct
D)Neither statement I nor II is correct

Question

Quizplus · Accepted Answer

Managing risk through hedging allows for the ability to have needed cash flows as well as reducing the chance of financial loss. Therefore, both statements I and II are correct.

Some Reasons to Manage Risk by Hedging Are Which of the Following