Multiple Choice
_____ Which of the following statements is false concerning speculating in a foreign currency using an FX forward?
A) The current forward rate is presumed to be the current market value of the FX forward.
B) FX gains and losses are measured by changes in the forward rate.
C) Premiums and discounts are not recognized currently in earnings.
D) Split accounting is not an issue.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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