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Basic Question 11 of 19
The ______ is the difference between bid and ask rates for a currency and relies on market conditions for that specific currency.
B. cross rate
C. spot rate
A. bid-ask spread
B. cross rate
C. spot rate
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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.