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.

---

Definitions:

External Urethral Sphincter

A muscle that controls the outflow of urine from the bladder and allows voluntary control over urination.

Pubococcygeus

A muscle of the pelvic floor that stretches from the pubic bone to the coccyx, playing a role in urinary control and sexual function.

Coccygeus

A small muscle located in the pelvic area, contributing to the pelvic floor structure and assisting in supporting pelvic organs.

Mastoid Process

A bony protrusion located behind the ear on the skull that contains air cells and contributes to the middle ear structure.