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Thinking about dealing on two-way prices, which of the following statements is not true?
A. Price-takers sell low and buy high
B. Price-takers prefer higher bids and lower offers
C. Price-makers buy high and sell low
D. Price-makers quote higher offers than bids
Answer: C

NEW QUESTION: 2
For the purposes of calculating VaR, an interest rate swap can be modeled as a combination of:
A. two zero coupon bonds
B. a zero coupon bond and an interest rate swap
C. a fixed coupon bond and a floating rate note
D. a fixed rate bond and a zero coupon bond
Answer: C
Explanation:
Explanation
In an interest rate swap, the parties agree to exchanging interest rate payments, with one party being a fixed interest rate payer and the other paying floating rates. The party receiving fixed rates and paying floating can be considered to be long a fixed rate bond and short a floating rate note. Therefore an IRS can be modeled as a combination of a fixed coupon bond and a floating rate note. Choice 'b' is the correct answer.

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A. Option A
B. Option D
C. Option B
D. Option C
Answer: A
Explanation:
Explanation
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