Which of the Following Is Not True Concerning the Accounting

question 48

Multiple Choice

Which of the following is not true concerning the accounting for hedges of forecasted transactions using an option?

• A) An intrinsic value must be calculate throughout the hedge period
• B) The accounting requires revaluing the market value of the option
• C) The option fixes the value of the transaction to the date of the commitment.
• D) All of these statements are true.