[KERI0323]

Is the only difference between a cash flow hedge and a fair value hedge the fact that the fair value hedge involves a firm purchase committment while the cash flow only involves an anticipated purchase? I know they are recorded in different places, just trying to figure out how to recognize which is which. Thanks!!

BEC 10/11/2010 77
AUD 11/30/2010 81
REG 02/25/2011 78
FAR 11/28/2011 74,68, 83 and DONE!!! NTS LA #460

[See Pee A]

Cash flow hedges have to do with the forwards and futures and currency swaps. Fair value hedges ex is buying an asset that goes up when another goes down. (real world example, buying gold when the broader market is declining)

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

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