Under the provisions of Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities--Including an amendment of FASB Statement No. 115,"

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Under the provisions of Statement of Financial Accounting Standards No. 159, for investment securities classified as held-to-maturity, the election of the fair value option would result in unrealized gains and losses on these securities being included in earnings in the income statement. The fair value option is not available for investment securities currently classified as trading or available-for-sale. Option D is incorrect because the fair value option can be applied to existing securities, not just new ones. Option A is incorrect because the fair value option for available-for-sale securities would result in unrealized gains and losses being included in net income, not other comprehensive income. Option B is incorrect because the fair value option for trading securities would also result in unrealized gains and losses being included in net income.

Under the Provisions of Statement of Financial Accounting Standards No