The actions which should be performed by Company BCC to hedge against the adverse movements of price and the reasons do not to achieve a completely flat risk profile by the company. Hedging: Hedging refers to that activity which performed by the investor to reduce the risk which would be possibly take place due to adverse movement of price.

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Chapter 25, Problem 4CQ

Summary Introduction

To explain: The actions which should be performed by Company BCC to hedge against the adverse movements of price and the reasons do not to achieve a completely flat risk profile by the company.

Hedging:

Hedging refers to that activity which performed by the investor to reduce the risk which would be possibly take place due to adverse movement of price.

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