Question $5$

In applying the fair value option under ASC $825-10-25($Predecessor literature Statement

of Financial Accounting Standards No$.159$: The Fair Value Option for Financial Assets and

Financial Liabilities$),$ a company

has the option to apply the fair value option to its investments classified as securities held$-$to$-$

maturity and securities$-$available$-$for$-$sale on an instrument$-$by$-$instrument basis.

is required to apply the fair value option to its investments classified as securities held$-$to$-$maturity

and securities available$-$for$-$sale.

has to apply the fair value option to all $($not some$)$ investments in securities if it elects the fair value

option.

none of the above.