Contingent exposure can best be hedged with
A)Options.
B)Money market hedging.
C)Futures.
D)All of the above

Name: Contingent exposure can best be hedged with A)Options. B)Money market hedging. C)Futures. D)All of the above
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Question

Quizplus · Accepted Answer

Options provide the flexibility to hedge contingent exposures, as they allow the holder to choose whether to exercise the option based on the actual outcome of the contingent event.

Contingent Exposure Can Best Be Hedged with