Which of the Following Is/aretrue Regarding the Fair Value Option

Multiple Choice

Which of the following is/aretrue regarding the fair value option for marketable securities and derivatives?

A) Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives in Other Comprehensive Income.
B) Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives, but they have no effect on any lines of the statement of cash flows.
C) Firms using the fair value option mark the carrying value of the asset to fair value each period.
D) If the change in fair value of the derivative decreases carrying value, then the firm reports the amount of that decrease as a loss during the current period.
E) all of the above