You are an active currency trader in the dollar-euro market. The current market quote ($/€) is 1.51-1.55. You do not want to trade much and would rather take the afternoon off because you have no idea where the market is going. Which of the following quotes is the most likely one you will present to the market given your objectives?
A) 1.52-1.56
B) 1.50-1.54
C) 1.50-1.56
D) 1.52-1.54

Question

Quizplus · Accepted Answer

Option C, 1.50-1.56, presents the widest spread between the buy and sell prices. This discourages trading, aligning with the trader's objective to take the afternoon off due to uncertainty about market direction.

You Are an Active Currency Trader in the Dollar-Euro Market