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Which of the following statements about the hedging with futures is correct? The main motivation for hedging is to gain higher price and profits than
Which of the following statements about the hedging with futures is correct? The main motivation for hedging is to gain higher price and profits than are possible without hedging. Hedging with futures can increase the firm value by lowering the risk of the firm as well as its financial distress costs and possibly raising tax savings from higher debt use. Hedging with futures does not provide any direct tangible benefits to the firm or lower the firm's financing costs. Hedging and speculation with futures will lead to higher benefits and costs. All of the above, except d, are true statements
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