Which of the Following Statements Is Not True Regarding Forward

question 51

Multiple Choice

Which of the following statements is not true regarding forward contracts that cover periods of time different from the settlement period (transaction date to the settlement date) ?

• A)​If the forward contract expires before the settlement date, the gain or loss will partially offset the gain or loss on the foreign currency transaction.
• B)​If the forward contract expires after the settlement date, post-settlement date gains and losses are not recognized as components of current operating income.
• C)​Premium and discount are amortized over the life of the contract.
• D)​All of these statements are true.

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Definitions:

Acute Phase

The initial stage of a disease or condition, marked by severe and rapidly onset symptoms that demand immediate medical attention.

Intensive Care Unit

A specialized department in a hospital that provides critical care and life support for acutely ill and injured patients.

Acute Care Unit

A hospital department designed to provide immediate treatment for severe, life-threatening conditions.

Emergency Department

A specialized department in a hospital providing immediate care for sudden or severe injuries and illnesses.