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A firm owns an asset A and it wants to hedge against changes in the value of A by making an offsetting sale of asset
A firm owns an asset A and it wants to hedge against changes in the value of A by making an offsetting sale of asset B. The firm minimizes risk by
A. selling the reciprocal of hedge ratio numbers of units of B
B. selling the same number of units of B as assets A
C. buying the same number of units of B as assets of A
D. selling hedge ratio (delta) number of units of B
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