You are an active currency trader in the dollar-euro market.The current market quote ($/€)is 1.51-1.55.You do not want to trade much and would rather take the afternoon off because you have no idea where the market is going.Which of the following quotes is the most likely one you will present to the market given your objectives?
A)1.52-1.56
B)1.50-1.54
C)1.50-1.56
D)1.52-1.54

Question

Quizplus · Accepted Answer

At these bid and ask rates,you are unattractive as a seller or buyer of euros.You are selling euros at 1.56 (too expensive)and buying euros at 1.50 (too cheap).People will take their business elsewhere.

You Are an Active Currency Trader in the Dollar-Euro Market