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Question 7 (1 point) What is NOT a way how risk management increases firm value? Hedging makes some project to become NPV>0 H

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Answer #1

7)

If hedging is costly, then it does not increase firm value

Answer is Hedging is costly

8)

The buyer of the forward contract has an obligation to buy the underlying asset and the seller an obligation to sell the asset as a given price at a future point of time.

Answer is Sell

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