Hedging
A) is a way to protect your accounts receivable position.
B) increases risk.
C) is a legal agreement to buy or sell a financial futures contract.
D) can be carried out with a futures contract.

Question

Quizplus · Accepted Answer

Hedging can be carried out with a futures contract, which allows individuals or businesses to buy or sell an underlying asset at a specific price and date in the future. This helps to manage risk by locking in a price and avoiding potentially negative market movements. Hedging can also be done with other financial instruments such as options, swaps, and forwards.