A Dealer in Pounds Who Thinks That the Exchange Rate

question 88

Multiple Choice

A dealer in pounds who thinks that the exchange rate is about to increase in volatility

• A)may want to widen his bid-ask spread.
• B)may want to decrease his bid-ask spread.
• C)may want to lower his ask price.
• D)none of the above.

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Definitions:

Disclosure

The act of providing essential information or facts, especially those that may influence the decision-making of investors or stakeholders.

Interest Calculations

The process of determining the amount of interest due on a loan or investment based on the principal, rate, and time.

Creditor

A creditor is an entity (person or institution) that lends money or extends credit to another entity, expecting repayment in the future.

Contingent Liability

A possible monetary liability that could arise based on the result of an upcoming event.