Which of the following is true concerning the accounting for a foreign currency option?
A) Hedge accounting is allowed when the characteristics and terms of the transaction cannot be identified.
B) Hedge accounting is not allowed when the anticipated transaction will most likely occur.
C) The option is carried as fair value on the balance sheet.
D) Options gains are deferred, whereas options losses are recognized in the period in which they occur.
Correct Answer:
Verified
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