Hedging is a strategy used to offset potential losses or gains that a company or investor may incur from various risks.

Hedging is a strategy used to offset potential losses or gains that a company or investor may incur from various risks. Let's examine the options: A. Shares: Shares (stocks) represent ownership in a company and are primarily used for investment, capital appreciation, and dividends, not typically for hedging against other risks. B. Revenues: Revenues are the income generated by a business from its normal operations. They are a financial metric, not a financial instrument. C. Taxes: Taxes are compulsory financial contributions levied by a government. They are not a financial instrument used for hedging. D. Derivatives: Derivatives are financial contracts whose value is derived from an underlying asset, index, or rate. Common types include futures, options, and swaps. These instruments are specifically designed and widely used to manage and mitigate various financial risks, making them ideal for hedging. Therefore, derivatives are commonly used for hedging. The correct option is D. D. Derivatives 3 done, 2 left today. You're making progress.