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Question 6(15 points) Indicate true or false and then explain. (1) From dealer's perspective, bid=sell and ask=buy. (5 points) (2) Dealers earn bid-ask spread, so
Question 6(15 points) Indicate true or false and then explain. (1) From dealer's perspective, bid=sell and ask=buy. (5 points) (2) Dealers earn bid-ask spread, so bid > ask. (5 points) (3) Option premium is strike price. (5 points)
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