ACI
3I0-012 · Question #47
Which one of the following statements is incorrect? Hedge accounting of an existing position no longer applies when:
The correct answer is A. the trader acquires additional exposure in the hedged item. See the full explanation below for the reasoning.
Question
Which one of the following statements is incorrect? Hedge accounting of an existing position no longer applies when:
Options
- Athe trader acquires additional exposure in the hedged item.
- Bthe hedging instrument is sold, terminated or exercised.
- Cthe hedged item is sold or settled.
- Da hedge fails the effectiveness test.
How the community answered
(36 responses)- A81% (29)
- B6% (2)
- C11% (4)
- D3% (1)
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