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STEP 1: DETERMINE YOUR POSITION

A. BUYER POSITION, OR
B. SELLER POSITION

STEP 2: RECORD THE HEDGE ITEM USING THE CURRENT SPOT RATE AT INITIAL RECOGNITION
STEP 3: RECORD THE HEDGING INSTRUMENT USING THE FORWARD RATE AT THE REMAINING LIFE OF
THAT HEDGING INSTUMENT.

PAG MAY KASAMA NG HEDGING INSTRUMENT


SAKA NALAN MAGDAGDAG NG STEP 3

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