Short-term hedging has limited effectiveness over the long run, the company should indeed take the time to:
A) engage in more hedging.
B) buy more long-term loans.
C) adjust to new price regimes.
D) all of the above.

Question

Quizplus · Accepted Answer

Short-term hedging is not effective for long-term financial stability, so the company should adjust to new price regimes to manage long-term risks.

Short-Term Hedging Has Limited Effectiveness Over the Long Run, the Company