Firms engage in transactions involving derivatives.For the most part, the complex parts of these transactions occur _____, but those transactions do _____ until, possibly, their settlement.
A)after the firm has acquired the derivative; not affect cash flows
B)before the firm has acquired the derivative; not affect cash flows
C)when the firm has acquired the derivative; not affect cash flows
D)after the firm has acquired the derivative; not affect net income
E)before the firm has acquired the derivative; not affect net income

Question

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The Answer of Firms engage in transactions involving derivatives.For the most part, the complex parts of these transactions occur _____, but those transactions do _____ until, possibly, their settlement.
A)after the firm has acquired the derivative; not affect cash flows
B)before the firm has acquired the derivative; not affect cash flows
C)when the firm has acquired the derivative; not affect cash flows
D)after the firm has acquired the derivative; not affect net income
E)before the firm has acquired the derivative; not affect net income

Firms Engage in Transactions Involving Derivatives