The decision to hedge or not should take into account
A. The financial institution's manager's perception of likely interest rate changes
B. The financial institution's manager's desire/willingness to accept risk
C. Specific accounting rules for a particular hedge strategy
D. All of the above



Answer :

Answer:

D. All of the above

Explanation:

The decision to hedge involves considering various factors, including the financial institution manager's perception of likely interest rate changes (A), the manager's desire or willingness to accept risk (B), as well as specific accounting rules for a particular hedge strategy (C). All these factors play a role in determining whether hedging is appropriate and how it should be implemented.