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Which of the following statement is FALSE? Which of the following statement is FALSE? A short hedge is appropriate when a company owns an asset

Which of the following statement is FALSE?

Which of the following statement is FALSE?

A short hedge is appropriate when a company owns an asset and expects to sell that asset in the future.

A long hedge is appropriate when a company knows it will have to purchase an asset in the future.

A short hedge can only be used when the company owns the asset and does not know what position it will take in the future.

A long hedge can be used to offset the risk from an existing short position.

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