Multiple Choice
Which of the following is true regarding the currency options market?
A) Hedgers and speculators both use currency options to attempt to lower risk.
B) The currency options offered by commercial banks are more liquid and have a smaller bid/ask spread than the options traded on an exchange.
C) When transaction costs are controlled for, the currency options market is efficient.
D) All of these are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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