At time of expiration, the present value of a call option is: above the exercise price. equal to the exercise price. below the exercise price. zero. To be effective, an economic loss on a hedged item is offset by a corresponding gain during the same period. True False Question 11 (1 point) All qualifying hedges are also derivatives. True False Question 12 (1 point) Hedge accounting may be applied only to derivatives that effectively hedge the risk associated with the hedged item. True False