Which of the following is not an example of a cash flow hedge?
A) a forward contract to buy US$ hedging recognised borrowings in US$.
B) a forward contract to sell US$ hedging a highly probable sale of inventory in US$.
C) a forward contract to buy US$ hedging future interest payments on variable rate debt in US$.
D) a forward contract to buy US$ hedging an unrecognised firm commitment to purchase goods in US$.
Correct Answer:
Verified
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