Foreign Currency Hedges F36-16b

What is the accounting treatment for hedging foreign currency denominated available for sale securities?

a. The change in fair value of the forward contract, measured as the change in the forward exchange rate, should be recognized as an increase or decrease in the carrying value of the forward contract

b. The change in fair value of the investment measured as the change in market value, should be recognized as an increase or decrease in the carrying value of the investment with a corresponding gain or loss in net income.