Examlex
Which of the statements below is TRUE?
Fair Hedge
A hedge that is accounted for at fair value, with changes in fair value recognized in earnings, to offset the exposure of an identified risk.
Foreign Currency Option
A financial contract allowing the owner to convert funds from one currency to another at a predetermined rate on a specific date, without being required to do so.
Put Option
A financial contract giving the holder the right to sell an asset at a specified price within a specific time.
Cash Flow Hedge
A cash flow hedge is a type of hedge that is used to manage exposure to variability in cash flows, particularly those related to forecasted transactions that could affect profit or loss.
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