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The Purpose of a Hedge on an Identifiable Commitment Where

Question 2

Multiple Choice

The purpose of a hedge on an identifiable commitment where the U.S.company is selling goods is to:


A) ​fix the basis of sales revenue to the date of the commitment
B) ​eliminate all exchange gains/losses from the date of commitment to the date of settlement
C) ​fix the basis of cost of goods sold to the date of commitment
D) ​eliminate any exchange gains/losses from the transaction date to the settlement date

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