A Dealer in Pounds Who Thinks That the Exchange Rate

question 43

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 options

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Definitions:

Tender Of Performance

An unsuccessful (because it is rejected or prevented by the other party) attempt by one of the parties to a contract to perform its obligations under the contract.

Breach Of Contract

The violation of any agreed-upon terms or conditions in a binding contract, which can lead to legal consequences for the party in breach.

Designated Contract

A specific agreement set apart for a unique purpose or recognized formally in a particular context.

Anticipatory Breach

Repudiation of a contract before performance is due.