Hedging is the process in which derivatives are used to reduce risk exposure.
<h3>What is hedging?</h3>
Hedging is a strategy that is used to limit risks attached to financial assets.
It is management strategy requires buying or selling an investment to potentially reduce the risk of adverse changes in price.
Therefore, the process in which derivatives are used to reduce risk exposure is hedging.
For more information on hedging kindly check brainly.com/question/22282124
Answer: A
Explanation:
Tax efficiency is an endeavor to limit charge obligation when given a wide range of monetary choices. A money related choice is supposed to be charge productive if the duty result is lower than an option monetary structure that accomplishes a similar end.
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