Hedging is a way to:

A) ensure lowest price.
B) try to minimize price and currency exchange risks.
C) minimize collusive bidding.
D) set trade discounts.
E) evaluate quantity discounts.

Hedging

A financial strategy used to reduce or limit the risk of price movements in commodities, currencies, or securities, by taking an offsetting position in a related security.

Currency Exchange

The process of exchanging one country's currency for another, affecting international trade and investments due to fluctuating exchange rates.

Price Risks

The uncertainty and potential financial loss associated with changes in the price of goods, services, or commodities.