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Which of the Following Is NOT True About a Spread

Question 15

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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