1 In what sense are the forward-risk premium and the bid-ask spread on forward contracts both related...

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1 In what sense are the forward-risk premium and the bid-ask spread on forward contracts both related to risk? Does the fact that the bid-ask spread is always positive and yet the forward risk premium can be positive or negative suggest that the nature of the two risks is different?

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International Finance

ISBN: 9780070374812

4th Edition

Authors: Maurice D. Levi

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