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What Reason Might Be Given for Not Wanting to Hedge

Question 8

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What reason might be given for not wanting to hedge the future issuance of a liability if interest rates are unusually high?
A)you are locking in a high rate
A)the margin cost will be expensive
B)transaction costs are higher
D)futures prices are lower
E)none of the above

Correct Answer:

Answered by Quizplus AI

Answered by Quizplus AI

A: The reason that might be given for no...

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