Which of the Following Statements Is Not True Regarding Forward

question 51

Multiple Choice

Which of the following statements is not true regarding forward contracts that cover periods of time different from the settlement period (transaction date to the settlement date) ?

• A)​If the forward contract expires before the settlement date, the gain or loss will partially offset the gain or loss on the foreign currency transaction.
• B)​If the forward contract expires after the settlement date, post-settlement date gains and losses are not recognized as components of current operating income.
• C)​Premium and discount are amortized over the life of the contract.
• D)​All of these statements are true.

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Definitions:

Navigation Pane

A feature in software applications that allows users to easily locate and manage different elements of a document or database, providing quick access to specific sections.

Navigation Pane

The Navigation Pane is a component of a software interface that allows users to easily browse and locate different sections or features of an application, often seen in file managers and email clients.

Rename

The action of changing the name of a file, folder, or other object in a computer system to something else.

Database Object

An entity in a database system used to store or reference data, such as tables, views, or procedures.