REFERENCE: Ref.09_03 Car Corp.(a U.S.-Based Company)sold Parts to a Korean Customer on Customer

Multiple Choice

REFERENCE: Ref.09_03
Car Corp.(a U.S.-based company) sold parts to a Korean customer on December 16,2008,with payment of 10 million Korean won to be received on January 15,2009.The following exchange rates applied:
SHAPE \* MERGEFORMAT

-A speculative derivative would be similar to which type of hedge?

A) An option designated as a cash flow hedge.
B) An option designated as a fair value hedge.
C) A forward contract designated as a cash flow hedge.
D) A forward contract designated as a fair value hedge.
E) A speculative option not designated..