Question: Problem 9 - 1 1 ( Static ) ( LO 9 - 6 ) Which of the following is not one of the three conditions

Problem

9 - 11 (

Static

) (

9 - 6)

Which of the following is not one of the three conditions that must be satisfied in order for a foreign currency forward contract to be accounted for as a hedge, that is

,

using hedge accounting?

Multiple Choice

The forward contract is used to hedge a cash flow exposure to foreign exchange risk.

The forward contract is highly effective in offsetting changes in the cash flows related to the hedged item.

The forward contract is properly documented as a hedge.

The forward contract is purchased in an officially recognized foreign currency market.

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