Generally,hedging transactions are:
A)negative NPV transactions.
B)positive NPV transactions.
C)zero-NPV transactions.
D)none of these answers.

Question

Quizplus · Accepted Answer

Hedging transactions aim to reduce risk, rather than generate profits, so they do not necessarily have a positive or negative net present value (NPV). The goal is to offset potential losses in one transaction with gains in another, resulting in a zero-NPV transaction. Therefore, choice C is the best answer.

Generally,hedging Transactions Are