The objective of a hedger is to:
A)minimise possible losses and still receive profits.
B)minimise possible losses at the expense of foregoing possible profits.
C)make arbitrage profits.
D)none of the given options.

Question

Quizplus · Accepted Answer

Hedgers aim to minimize possible losses due to price fluctuations in the markets they operate in, often at the expense of foregoing potential profits. This is because their primary goal is to reduce risk rather than to speculate for large gains.

The Objective of a Hedger Is To