Which of the Following Is NOT True About a Spread

question 19

Multiple Choice

Which of the following is NOT true about a spread in a financial market?

• A) A spread may refer to the gap between bid and ask prices of a stock or other security.
• B) A spread may refer to the simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months.
• C) A spread may refer to the difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public.
• D) A spread may refer to the difference between the price that someone purchasing an item in an auction pays and the price that the seller receives.
• E) A spread may refer to the price an issuer pays above a benchmark fixed-income yield to borrow money.

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Definitions:

Stretch Reflex

A muscle reflex that responds to the stretching within the muscle, automatically contracting the muscle in response to its stretching in order to protect the muscle from over-stretching.

Patellar Tendon

The tendon that connects the patella (kneecap) with the tibia (shinbone), playing a key role in knee extension.

Quadriceps Femoris

A group of four muscles located at the front of the thigh, which are crucial for walking, running, and jumping by extending the knee.

Hamstrings

A group of three muscles at the back of the thigh that are involved in bending the knee.