What is the appropriate accounting treatment for the discount on a foreign currency forward contract when forward points are excluded from the forward contract in assessing its effectiveness as a hedge? The forward contract discount should be
a. Recognized immediately in net income as a foreign exchange gain or loss.
b. Recognized immediately in net income as an adjustment to interest expense.
c. Amortized to net income as a foreign exchange gain or loss over the life of the forward contract.
d. Amortized to net income as an adjustment to interest expense over the life of the forward contract.