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:

Fetus

The name for a developing human organism from the start of the ninth week after conception until birth.

In Utero

Pertaining to or occurring within the uterus; often used to describe development or conditions before birth.

Genetic and Environmental Factors

Elements that contribute to the development and characteristics of organisms, including inherited genes from parents and conditions of the environment in which the organism lives.

Phenotype

The observable characteristics of a person, including appearance, personality, intelligence, and all other traits.