Question: 2. In financial risk management, hedging is commonly defined as which of the following? a. assuming risk in order to profit from a change in

 2. In financial risk management, hedging is commonly defined as which

2. In financial risk management, hedging is commonly defined as which of the following? a. assuming risk in order to profit from a change in a future rate or price. b. using financial instruments to reduce risk associated with uncertain future cash flows. c. speculating in financial markets d. calculating collected balances to a date different from the date the transaction occurred. e. lending based on the pledging of accounts receivable and inventory as collateral

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