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A dealer in Australian Dollars who thinks that the exchange rate is about to increase in volatility A. May want to decrease his bid-ask spread

A dealer in Australian Dollars who thinks that the exchange rate is about to increase in volatility

A. May want to decrease his bid-ask spread in both forward and spot exchange rate quotes.

B. May want to widen his bid-ask spread in both forward and spot exchange rate quotes.

C. None of the options.

D. May want to lower his bid-ask spread in forward quotes and widen his spread in spot quotes.

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