Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Using a futures or forward contract to hedge a specific asset or liability risk is called macrohedging.
B) Using a futures or forward contract to hedge a specific asset or liability risk is called microhedging.
C) Using a futures or forward contract to hedge a specific asset or liability risk is called asset- or liability-specific hedging.
D) Using a futures or forward contract to hedge a specific asset or liability risk is called naïve hedging.