Which of the Following Statements Is True Concerning Forward Contracts

Multiple Choice

Which of the following statements is true concerning forward contracts classified as hedges of an identifiable foreign currency commitment?

A) Forward contracts used as hedges cannot exceed the foreign currency commitment.
B) Forward contracts cannot extend for a time period after the transaction date of the commitment.
C) The gain or loss traceable to the time period after the transaction date of the commitment should not be deferred.
D) None of these statements is true.