When Currency Options Are Not Standardized and Traded Over-The-Counter, There

question 96

Multiple Choice

When currency options are not standardized and traded over-the-counter, there is ____ liquidity and a ____ bid/ask spread.

• A) less; narrower
• B) more; narrower
• C) more; wider
• D) less; wider

---

Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Demand Curve

A diagram displaying how the cost of a product is connected to the consumer demand for it.

Cost Functions

A mathematical relationship expressing the cost of production as a function of the quantity of goods produced.

Brand Name

A name owned by a particular firm that distinguishes its products from those of other firms.