Foundation of Finance
Quick practice
Question 1 of 5
Assertion (A): In hedging, the hedger tries to fix the price at a certain level aiming to ensure certainty about the cost and the revenues.
Reason (R): It is the two-step process that can be used for locking the profit.
Codes:
A
(A) and (R) are true and (R) is the correct explanation of (A)
B
(A) and (R) are true but (R) is not the correct explanation of (A)
C
(A) is false, but (R) is true
D
(A) is true, but (R) is false
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