FAR5 Flashcards
1
Q
The Intrinsic value of a stock option is…
A
The market price - the strike price
2
Q
What must a financial instrument have to be a derivative?
A
At least one underlying, one notional amount, allow for settlement, require no net initial investment
3
Q
A fair value hedge is reported at its _______ with unrealized gains/losses recognized in _______ in the period of change.
A
- Fair Market Value
- Earnings
4
Q
Changes in fair value hedges, net investment hedges, ineffective portion of cash flow hedges are reported in…
A
The income statement
5
Q
Changes in the effective portion of cash flow hedges are reported in…
A
Other comprehensive income
