Derivative instruments acquired to hedge exposure may be classified as either a fair value hedge or a cash flow hedge. Derivative instruments acquired to hedge exposure to variability in expected future cash flows are cash flow hedges. Derivative instruments acquired to hedge exposure to changes in the fair value of an asset or liability are fair value hedges. Which of the following are Fair value hedges?

a. Firm B entered into the interest swap agreement to neutralize the effect of changes in interest rates on the market value of its notes payable.

b. Firm A iacquired the forward foreign exchange contract to neutralize the effect of changes in exchange rates on its commitment to purchase the equipment.

c. Firm entered into the interest swap agreement to neutralize changes in cash flows for interest payments on its variable rate notes payable.

d. Firm D iacquired the forward contract on whiskey to protect itself from changes in the selling price of whiskey between October 31, Year 1, and March 31, Year 2..