A Reason for a Firm to Engage in Hedging That

A reason for a firm to engage in hedging that does not arise within the firm is:

A) market inefficiencies that provide profitable opportunities through hedging.
B) regulatory requirements that favor firms that hedge against various exposures.
C) the possibility that currency fluctuations may affect future obligations of the firm.
D) that hedging may make the firm less attractive to another firm that is considering a hostile takeover of the firm.

Correct Answer:

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