Why are the bid-ask spreads larger in the forward market than in the spot market?
A) because the forward market is less liquid than the spot market
B) because the spot market is more volatile than the forward market
C) because the forward market is more liquid than the spot market
D) because the spot market is less liquid than the forward market
Correct Answer:
Verified
Q2: What is a spot-forward swap?
A) the purchase
Q3: How much of the probability distribution of
Q4: What is the term for the conditional
Q5: What is the name of the action
Q6: A swap transaction in the forward market
Q7: If the euro is selling at a
Q8: If the forward price of a currency
Q9: If you want to hedge and owe
Q10: One of the major reasons for the
Q11: In the forward market the bid-ask spreads
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