Which of the Following Is True of the Financial Distress

Which of the following is true of the financial distress of a company and hedging?

A) Firms that face high financial distress costs have greater incentives to hedge.
B) Hedging eliminates the possibility of financial distress.
C) If the cost of hedging is sufficiently large,and if hedging reduces variance very little,then hedging decreases the probability of financial distress.
D) Hedging has no impact on the cash flows of an unlevered firm and on the costs of financial distress.