Question: A forward exchange contract may be used (a) To manage an exposed foreign currency position, (b) To hedge an identifiable foreign currency commitment, (c) To

A forward exchange contract may be used
(a) To manage an exposed foreign currency position,
(b) To hedge an identifiable foreign currency commitment,
(c) To hedge a forecasted foreign currency transaction, or
(d) To speculate in foreign currency markets. What are the main differences in accounting for these four uses?

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