Hedging: Hedging against an investment risk is termed for strategically implementing the instruments and tools in the market to minimize the risk and effects of any adverse price movements. It can be said that investors are benefitted through hedging as they hedge one investment by making another investment. To calculate : The transaction record of inventory and the hedging instrument assuming qualification as a fair value hedge.

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Chapter 9.M, Problem M.1.1P

To determine

Hedging:

Hedging against an investment risk is termed for strategically implementing the instruments and tools in the market to minimize the risk and effects of any adverse price movements. It can be said that investors are benefitted through hedging as they hedge one investment by making another investment.

To calculate :

The transaction record of inventory and the hedging instrument assuming qualification as a fair value hedge.

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