微信扫一扫
实时资讯全掌握
| Which of the following is not a valid reason for a company to hedge exchange rate risk? A. Firms may benefit from economies of scale when hedging in forward or money markets, while individual shareholders may not. B. When a firm’s cash flows are highly variable, the chance of financial distress is greater, and financial distress is costly in imperfect markets. C. Short selling is often difficult for the individual shareholders. D. Hedging a foreign-currency inflow is beneficial when the forward rate is at a premium, because the hedge is profitable and therefore desirable. |