Which of the following statements related to the benefits of corporate hedging using forward and futures contracts is INCORRECT?
A) Hedging can enable the locking-in of stable prices and facilitate the planning of production and marketing activities with greater certainty.
B) Hedging can permit forward pricing of products.
C) Hedging can facilitate the raising of capital.
D) Hedging can reduce the risk of default and financial distress.
E) Hedging can enable a firm to develop a diverse product line.
Correct Answer:
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