When we talk about the financial management of derivatives for non-financial companies, it should be designed to reduce risk but is subject to a number of risk factors, those include:
A) Companies should not over insure the risk.
B) Companies can be unsure about what risks the company is going to take and what risks the company is not going to take.
C) Derivatives should never be related to an underlying transaction.
D) When companies want to avoid risks, they should always use derivatives.
Correct Answer:
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