Question 1
Marks: 1
A USD/CAD bank trader is currently quoting a small figure bid-ask of 35-40, when the rest of the market is trading at CAD1.3436-CAD1.3441. What is implied about the trader's beliefs by her prices? [1 mark]
Choose one answer.
a. She is trying to increase her inventory of US dollars by discouraging purchases of CAD. She thinks the US dollar is going to appreciate.
b. She is trying to increase her inventory of US dollars by discouraging purchases of CAD. She thinks the Canadian dollar is going to appreciate.
c. She is wanting to be an active trader in an effort to earn lots of bid-ask spread.
d. She is trying to increase her inventory of Canadian dollars by discouraging purchases of US dollars. She thinks the Canadian dollar is going to appreciate.
e. She is wanting to be an active trader in an effort to earn lots of commission.
Question 2
Marks: 1
Restate the following one-, and three-month outright forward European term bid-ask quotes in forward points. [1 mark]
Spot 1.3431/1.3436
One-Month 1.3432/1.3442
Three-Month 1.3448/1.3463
Choose one answer.
a. OneMonth: 1.3432-1.3442; ThreeMonth: 1.3448-1.3463
b. OneMonth: 01/06; ThreeMonth: 16/21
c. OneMonth: 01/06; ThreeMonth: 17/27
d. OneMonth: -01/-06; ThreeMonth: -16/-21
e. none of the options given above or below作者: hornet 时间: 2010-9-12 21:23:52