Which of the Following Is True Regarding the Currency Options

question 60

Multiple Choice

Which of the following is true regarding the currency options market?

• A) Hedgers and speculators both use currency options to attempt to lower risk.
• B) The currency options offered by commercial banks are more liquid and have a smaller bid/ask spread than the options traded on an exchange.
• C) When transaction costs are controlled for, the currency options market is efficient.
• D) All of these are correct.

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Definitions:

Job Responsibilities

Specific duties and tasks that an employee is expected to perform as part of their role within an organization.

Davis-Bacon Act

A United States federal law that requires paying the local prevailing wages on public works projects for laborers and mechanics.

Walsh-Healy Public Contracts Act

A U.S. federal law that requires minimum wage, maximum hours, and safety and health standards for contractors producing goods for the government.