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Basic Question 3 of 19

The ______ between the bid and ask prices is ______.

A. spread; a form of remuneration for the dealer
B. points; dependent on the currency traded
C. difference; fixed by the country market for currency exchange

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

calculate and interpret the bid-ask spread on a spot or forward foreign currency quotation and describe the factors that affect the bid-offer spread;

identify a triangular arbitrage opportunity and calculate its profit, given the bid-offer quotations for three currencies;

CFA® 2025 Level II Curriculum, Volume 1, Module 8.