Q279
The main advantages of hedging are (i) Limiting losses (ii) Increases liquidity (iii) Lowers margin outlay (iv) Exchange rate fluctuations (v) Application of different tax rates (vi) Covering political risk in foreign investments
A.
(i), (ii), (iv) and (v)
B.
(i), (ii), (iii) and (iv)
C.
(ii), (iii), (iv) and (v)
D.
(i), (ii), (iii), (iv), (v) and (vi)
AnswerAnswer: Option D
Solution
Answer: Option D
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