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Derivative Instruments Acquired to Hedge Exposure to Changes in the Fair

Question 95

Multiple Choice

Derivative instruments acquired to hedge exposure to changes in the fair values of assets or liabilities are fair value hedges.Fair value hedges are


A) hedges of a recognized asset or liability (or an identified portion of a recognized asset or liability) , only.
B) hedges of an unrecognized firm commitment (or an identified portion of that commitment) , only.
C) hedges on some or all of the cash flows of a recognized asset or liability, only.
D) hedges on some or all of the cash flows of forecasted transactions, only.
E) hedges of a recognized asset or liability (or an identified portion of a recognized asset or liability) , and hedges of an unrecognized firm commitment (or an identified portion of that commitment) .

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