A naïve hedge is one
A) where the hedger is not fully informed.
B) where the hedger attempts to eliminate all of the risk of the underlying spot position.
C) where the hedger uses microhedges rather than macrohedges to limit risk.
D) where 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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