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

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

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