Which of the Following Statements Does Not Properly Describe GAAP

Which of the following statements does not properly describe GAAP accounting for derivatives?

A) Derivatives are reported in the balance sheet at fair value.
B) Speculative investments in derivative contracts can increase earnings volatility.
C) Changes in the fair value of a derivative must be included in net income when they occur.
D) A derivative's unrealized holding gain or loss for a particular year is not a component of that year's income from operations.