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If a Citibank Dealer Expects the Swiss Franc to Appreciate

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True/False

If a Citibank dealer expects the Swiss franc to appreciate against the U.S.dollar,she will attempt to lower both bid and offer rates for the franc,attempting to persuade other dealers to buy francs from Citibank and dissuade other dealers from selling francs to Citibank.


Definitions:

Cash Offer

A proposal to buy assets, including securities or real estate, using cash as the form of payment without involving financing or loans.

Rights Offer

An offer to existing shareholders to buy additional shares in a company at a discount to the market price.

Seasoned New Issue

A seasoned new issue refers to securities offered for sale by a company after the initial public offering, meaning the company already has securities that have been trading in the secondary market.

New Issue

The term for securities that are offered to the public for the first time through an initial public offering (IPO) or a bond issuance.

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