For Which Type of Derivative Are Changes in the Fair

question 45

Multiple Choice

For which type of derivative are changes in the fair value deferred and recognized as an equity adjustment?

• A) Fair value hedge
• B) Cash flow hedge
• C) Operating hedge
• D) Notional value hedge

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Definitions:

Effectively Overcome

To successfully deal with or surmount a challenge, obstacle, or difficulty through efficient and strategic means.

Realistic Expectations

Achievable and sensible aspirations or beliefs about future events and outcomes, grounded in practicality.

Encounter

To meet or come across a person or situation, often unexpectedly.

Roommates

Roommates are persons who share a living space such as an apartment or dormitory, but are not related by family or romantic relationships.