A Fair Value Hedge Protects the Company Against

question 29

Multiple Choice

A fair value hedge protects the company against

• A) errors in valuation of derivative instruments.
• B) a future transaction that has not yet been recognized.
• C) an existing exposure related to an existing asset or liability.
• D) fluctuations in exchange rates.

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Definitions:

Wireless LAN

A local area network that enables devices to communicate without physical cables, using radio waves for connectivity.

Connected Vehicle

Refers to cars, buses, trucks, and other mobile machines that use internet connectivity and other technologies to communicate with each other and with infrastructure, enhancing safety and efficiency.

Self-Driving Technology

Revolutionary technology in vehicles that allows them to navigate and operate without human intervention.

IBM

International Business Machines Corporation, a multinational technology and consulting company known for its hardware, software, and services in computing.