Financial options can be used to hedge risks such as interest rates and foreign exchange rates.

Name: Financial options can be used to hedge risks such as interest rates and foreign exchange rates.
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Question

Quizplus · Accepted Answer

Financial options, such as interest rate options and currency options, can be used to hedge against risks associated with interest rates and foreign exchange rates, respectively. This allows companies to mitigate potential losses and stabilize their financial planning.

Financial Options Can Be Used to Hedge Risks Such as Interest