When Hedging Economic Exposures,firms Often Use a Hedge That Has

When hedging economic exposures,firms often use a hedge that has a shorter term than the activity being hedged because:

A) maturity on economic exposures are often long-term and long-term hedges are expensive and involve more risk.
B) the firm wants the benefit of the hedge to mature before the economic exposure matures.
C) the maturity of the economic exposure is not known and the firm wants to be sure that the hedge is not longer than the economic exposure.
D) economic exposures are notoriously overstated and the firm wants to minimize the cost of the hedge.

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