Swaps are usually the best hedging tool to use to hedge long-term risks of 4 or 5 years or more.

Name: Swaps are usually the best hedging tool to use to hedge long-term risks of 4 or 5 years or more.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

Swaps are typically used for longer-term hedging because they involve agreements to exchange cash flows over an extended period of time, such as 4 or 5 years or more. For shorter-term risks, other hedging tools like futures or options may be more appropriate.

Swaps Are Usually the Best Hedging Tool to Use to Hedge