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11. Which of the following is not a reason for firms to hedge? (Points : 1) Firm

ID: 2756121 • Letter: 1

Question

11. Which of the following is not a reason for firms to hedge? (Points : 1)        Firms can hedge less expensively than can their shareholders
       Shareholders cannot tolerate mark-to-market losses
       Hedging by corporations can have tax advantages
       Shareholders are not always aware of their firms' risks
       none of the above

Question 12. 12. Find the profit if the investor buys a July futures at 75, sells an October futures at 78 and then reverses the July futures at 72 and the October futures at 77. (Points : 1)        -3
       -1
       2
       1
       -2

Explanation / Answer

11. Which of the following is not a reason for firms to hedge? (Points : 1) Firm