In Which of the Following Activities Is Hedge Accounting Prohibited

question 3

Multiple Choice

In which of the following activities is hedge accounting prohibited?

• A)hedging an overall portfolio as opposed to an individual transaction
• B)using short calls to protect a long asset
• C)using long puts to protect an asset
• D)hedging a long position with a short futures
• E)hedging a swap with a swaption

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Definitions:

Group Dynamics

The study of behaviors and psychological processes occurring within a social group or between social groups.

Influential Interpersonal Processes

Interactions between individuals that have a significant impact on attitudes, beliefs, or behaviors.

Scientific Field

An area of study or research that pertains to a specific discipline of science, such as physics, chemistry, or biology.

Minimum Group Size

The smallest number of individuals required to form a group capable of achieving its objectives or exhibiting characteristics of group dynamics.