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Type or paste Match the Items below P11-32B Matching Key Terms LO 11-3 Match the items in the right-hand column with the descriptions/explanations in the
Type or paste Match the Items below
P11-32B Matching Key Terms LO 11-3 Match the items in the right-hand column with the descriptions/explanations in the left-hand column. Hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment. b. Hedge of the exposure to variable cash flows of a forecasted transaction. c. Derivative instrument that is part of a host contract. d. Specified interest rate, security price, or other variable. Number of currency units, shares, bushels, or other units specified in the contract in U.S. dollars. f. Recognized in current earnings in the period of the change in value. Recognized in Other Comprehensive Income in the period of the change in value. Measure of the extent to which the derivative offsets the changes in the fair values or cash flows of the hedged item. i. Hedge of the net investment in foreign operations. j. Conversion of a company's fixed-rate debt to a variable-rate debt. Option that provides the right to acquire an underlying at an exercise or strike price. Option that provides the right to sell an underlying at an exercise or strike price. Value of an option due to the spread between the current market price of the hedged item and the option's strike price. Value of an option due to the opportunity to exercise the option over the term of the option period. Process of separating the value of an embedded derivative from its host contract. Bifurcation Call option Cash flow hedge Effectiveness Embedded derivative Fair value hedge Foreign currency hedge Gains or losses on cash flow hedges Gains or losses on fair value hedges Interest rate swap Intrinsic value Notional amount Put option Time value Time value UnderlyingStep by Step Solution
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