Question: Why would you expect this situation to qualify for hedge accounting? Why should this hedge be accounted for as a fair-value hedge instead of as

Why would you expect this situation to qualify for hedge accounting? Why should this hedge be accounted for as a fair-value hedge instead of as a cash-flow hedge? What entries should be made on May 1, 2016, to account for the firm commitment and the option? Assume that the market price for Grade A silver is $15 per troy ounce on December 31, 2016. What are the required entries? Assume that the market price of Grade A silver is $13.8 per troy ounce on February 1, 2017, when Ins receives the silver from Sil. Prepare the appropriate journal entries on February 1, 2017

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