Cash flow hedge: A cash flow hedge helps us to create fixed price and rates when there is a variation in future cash flows due to changes in prices or rates. In the cash flow hedge, the hedge item is the one in which future cash flows might be affected due to some particular risks . The affects of cash flow hedge on operating income currently and in future with the reason behind working of interest swap.

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Chapter 9.M, Problem 3UTI

To determine

Cash flow hedge:

A cash flow hedge helps us to create fixed price and rates when there is a variation in future cash flows due to changes in prices or rates. In the cash flow hedge, the hedge item is the one in which future cash flows might be affected due to some particular risks .

The affects of cash flow hedge on operating income currently and in future with the reason behind working of interest swap.

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