What risks confront dealers in the foreign exchange market

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1. What risks confront dealers in the foreign exchange market? How can they cope with those risks?

2. Suppose a currency increases in volatility. What is likely to happen to its bid-ask spread? Why?

3. Who are the principal users of the forward market? What are their motives?

4. How does a company pay for the foreign exchange services of a commercial bank?

Reference no: EM131278669

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