CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

The quote in the interbank USD/EUR spot market is 1.3231/1.3235. A dealer quotes a client a bid-offer of 1.3229/1.3238 for a spot USD/EUR transaction. Suppose a client pays the dealer's offer, the dealer should make a profit of ______ for every EUR transacted.
A. 0.0002.
B. 0.0003.
C. 0.0004.
Explanation: The dealer will buy a EUR from the interbank market at 1.3235 and sell it to the client at 1.3238, making a profit of 0.0003 for every EUR transacted.

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