The Purpose of a Hedge on an Identifiable Commitment Where

question 2

Multiple Choice

The purpose of a hedge on an identifiable commitment where the U.S.company is selling goods is to:

• A)​fix the basis of sales revenue to the date of the commitment
• B)​eliminate all exchange gains/losses from the date of commitment to the date of settlement
• C)​fix the basis of cost of goods sold to the date of commitment
• D)​eliminate any exchange gains/losses from the transaction date to the settlement date