A naïve hedge is one
A) in which the hedger is not fully informed.
B) in which the hedger attempts to eliminate all of the risk of the underlying spot position.
C) in which the hedger uses microhedges rather than macrohedges to limit risk.
D) in which the hedger unwittingly increases the risk of the FI's position.
E) that does not have to be reported on the FI's financial statements.
Correct Answer:
Verified
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