n NISM Certifications
NSM General NISM
Medium

In an OTC market, a market maker quotes 81.10/81.11 for USD 1 mn with a one-paise bid/offer spread. For a USD 100 mn transaction, the market maker is likely to quote:

Practice question from NISM Series I - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A lower bid/offer spread

  2. A higher bid/offer spread

    Correct answer

  3. C

    Same one-paise bid/offer spread

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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