Module 5.1: Forex Quotes, Spreads, and Triangular Arbitrage Flashcards
1
Q
The FX spread quoted by a dealer depends on
A
Spread in an interbank market for the same currency pair.
Size of the transaction.
Relationship between the dealer and client.
2
Q
The FX interbank spread on a currency pair depends on
A
Currencies involved.
Time of day.
Market volatility.
3
Q
cross rate
A
Exchange rate between two currencies implied by their exchange rates with a common third currency.
4
Q
forward premium (discount) =
A
F − S0
5
Q
A
