You Are an Active Currency Trader in the Dollar Versus

question 19

Multiple Choice

You are an active currency trader in the dollar versus euro market.The current market quote ($/€) is 1.51-1.55.However,you believe the euro will appreciate versus the dollar.Which of the following quotes is the most likely one you will present to the market given your views?

• A)1.52-1.56
• B)1.50-1.54
• C)1.50-1.56
• D)1.52-1.54

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Definitions:

Date of Sale

The specific day on which a transaction is completed and ownership of goods or assets is transferred.

Date of Payment

The specific day on which a payment is due or processed.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Average Collection Period

The average number of days it takes for a business to collect its receivables from customers.