Hedge Effectiveness Is Ascertained From

question 10

Multiple Choice

Hedge effectiveness is ascertained from:

• A) the hedge ratio of the hedging relationship reflects actual quantities and is consistent with the purpose of hedge accounting.
• B) there is an economic relationship between the hedging instrument and the hedged item.
• C) the effect of credit risk does not dominate the economic relationship hedging instrument and the hedged item.
• D) all of the options are correct.

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