As discussed in class, there are, broadly speaking, two types of economic hedges: 1) a hedge of an existing position; and 2) a hedge of an unrecognized commitment (either firm or anticipated). In your own words, explain why hedge accounting is not required for a hedge of an existing position. In your own words, explain why hedge accounting may be required for a hedge of an unrecognized commitment. Provide a real-life example of a hedge of an unrecognized commitment. When hedge accounting is used, which type of hedge accounting is recommended, as per the professors in-class discussion?