You quote a price to a broker on EUR 100 million. Your price is hit for EUR 50 million. What does the Model Code say about this situation?
A) You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.
B) You have a right to qualify your quotes in terms of amounts, provided the amounts are marketable.
C) You have a right to qualify your quotes in terms of amounts, once you have discovered the name of the counterparty for credit reasons.
D) You have a right to qualify your quotes in terms of amounts.

Question

Quizplus · Accepted Answer

According to the Model Code, a dealer has the right to qualify their quotes in terms of amounts, but they must do so when they make the price. Therefore, option A is the best choice as it aligns with the guidelines outlined in the Model Code. The other options either have additional requirements or do not accurately reflect the protocol in this situation.

You Quote a Price to a Broker on EUR 100