The embedded derivative in a hybrid contract should be? a) Always separated b) Never separated c) Separated if meeting specific criteria d) Recorded at cost only
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- If a contract modification adds distinct goods or services and the contract price increases by an amount that reflects the stand-alone selling price of the added goods or services, then the contract modification should be accounted for By cumulative catch-up method. By prospective method. As a new separate contract. None of these choices.In order to create a separating equilibrium, low-risk drivers should be charged: Low deductible and high premiums High deductible and low premiums High premiums with no deductibleIs the “forward price” the same thing as the “value of the forward contract” Explain.