Question $6-6$ part a $($LO $06-02)$

What is the timing for hedges of foreign currency$-$denominated assets and liabilities?

Multiple Choice

Made when a purchase order is placed or a sales order is received, before a transaction has taken place

Not entered into until a foreign currency transaction $($import purchase or export sale$)$ has taken place

Made at the time a future foreign currency purchase or sale can be anticipated, even before an order has been placed or received

Never recorded