5. The rate at which a trader is willing to sell an underlying currency is known

Question

5. The rate at which a trader is willing to sell an underlying currency is known as the: a. direct quote b. indirect quote c. bid rate d. ask rate 6. The rate at which a trader is willing to buy an underlying currency is known as the: a. direct quote b. indirect quote c. bid rate d. ask rate 7. The spot rate of Canadian dollar to US dollar is 0.73000 and the 6-month forward rate is 0.73057. What is the premium from the existing spot rate for the 6-month Canadian dollar? a. 0.108% b. 0.114% C. 0.1 56% d. 0.161%

Explanation / Answer

5. Ask rate is the rate at which Trader willing to sell the currency. Answer D

6. Bid rate is the rate at which Trader willing to buy the currency. Answer C

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