_____ a Domestic Exporter Enters into an FX Forward to Hedge

Multiple Choice

_____ A domestic exporter enters into an FX forward to hedge an FX receivable arising from an exporting transaction. Concerning these two transactions,

A) The FX trader's obligation to the exporter is a receivable that must be initially recorded by the exporter at the fixed contractual amount.
B) Any premium or discount is to be recognized in earnings at the inception of the FX forward.
C) Any FX gains and losses can be offset and netted in earnings.
D) The use of an FX forward results in a perfect hedge.
E) None of the above.