Using Forward Contracts as a Hedge
{"Image DocumentName": "Using Forward Contracts as a Hedge", "Image ImageDescription": "Fair Value Hedge\u2014Hedging an Unrecognized Foreign Currency Commitment. A U.S. firm, at a date earlier than the transaction date, may make a commitment to a foreign company to buy or sell goods at a price established in foreign currency. Changes in the exchange rate between the commitment date and transaction date would be reflected in the cost or sales price of the asset. The U.S. firm may enter a forward contract to hedge its commitment. LO 7 Forward contracts as a hedge.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}