14-15

14. All of the following data may be needed to determine the fair value of a forward contract at any point in time except A) The forward rate when the forward contract was entered into. B) The current forward rate for a contract that matures on the same date as the forward contract entered into C) The future spot rate D) A discount rate E) The company's incremental borrowing rate 15. Which of the following is not a condition of accounting for hedge derivatives? A) The derivative is minimally effective in offietting changes in the cash flows or fair value related to the hedged item. B) The derivative is properly documented as a hedge. C) The derivative is used to hedge a cash flow exposure to foreign exchange risk. D) The derivative is highly effective in offsetting changes in the cash flows or fair value related to the hedged item. E) The derivative is used to hedge a fair value exposure to foreign exchange risk. 2