Question: What is the basic rationale for hedging? multiple choice are: to reduce a firm's sensitivity to changes in prices, exchange rates, or interest rates to

What is the basic rationale for hedging?

multiple choice are:

to reduce a firm's sensitivity to changes in prices, exchange rates, or interest rates
to increase a firm's profit
to reduce a firm's exposure to a risk
derivatives can be used to hedge
A and B
A and C
A and D
B and C
B and D
C and D
all but A
all but B
all but C
all but D
all are true

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