The best way to look at hedging is as a cost. This is money you...

90.2K

Verified Solution

Question

Accounting

image
The best way to look at hedging is as a cost. This is money you plan to lose. If you view this as a cost of doing business, it invokes less of a gamblers perspective. In this way it is not viewed as a risk. Forward contracts are a great hedge, and as I have said, Southwest makes good use of these. What other hedges have you encountered or you are interested in

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students