All of the Following Hedges Are Used for Future Purchase/sale

question 39

Multiple Choice

All of the following hedges are used for future purchase/sale transactions except

• A) Forward contracts used as a fair value hedge of a firm commitment.
• B) Options used as a fair value hedge of a firm commitment.
• C) Option contract cash flow hedge of a forecasted transaction.
• D) Forward contract cash flow hedges of a forecasted transaction.
• E) Forward contracts used to hedge a foreign currency denominated liability.

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Definitions:

Facial Expressions

The movements of the muscles beneath the skin of the face, conveying emotions, reactions, or intentions.

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Individualism

A principle favoring freedom and self-expression over collective or state control.

Individualism

A philosophy or social outlook that emphasizes the moral worth of the individual.