Which one of the following is not generally considered a benefit of hedging?
A) Hedging reduces one or more aspects of business risk.
B) Hedging allows prices to be locked in advance.
C) The costs of hedging are paid by the speculators.
D)Hedging can stabilize profits.

Question

Quizplus · Accepted Answer

The costs of hedging are typically borne by the company or individual seeking to hedge their risk, rather than by speculators.

Which One of the Following Is Not Generally Considered a Benefit