2. Which of the following statements is false with regard to the accounting for derivatives?

A. Investments in derivative instruments must be reported within the balance sheet at fair market value.

B. A speculative derivatives unrealized holding gain or loss for a particular year should be reported as a component of income from continuing operations.

C. Speculative investments in derivative contracts are expected to result in decreased earnings volatility.

D. The unrealized losses of a speculative derivative must be included in net income quarterly.