Dealer's work in the OTC market
What does a dealer do in the OTC market? Financial trades are made in an over the counter market. Explain.
Expert
In contrast to the organized exchanges, there are physical locations. These physical locations better termed as over the counter market has no permanent location and place, or more correctly, it is everywhere. The OTC is a network of dealers all around the world who maintain inventories of securities for sale. If you wanted to buy a security that is traded OTC, you would call your broker, who would then shop among competing dealers who have the security in their inventory. After locating the dealer with the best price, your broker would buy the security on your behalf. The role of dealers: Dealers make their living buying securities and reselling them to others. They work just like car dealers who buy cars from manufacturers for selling to others. They make money by buying securities for one price (called the bid price) and selling them for a higher price, (called the ask price). The difference, or spread, between the bid price and the ask price represents the dealer’s fee.
Describe how the special drawing rights (SDR) are constructed. Also, discuss the situation under which the SDR was build.SDR was created by the IMF in the year of 1970 as a new reserve asset, partially to alleviate the pressure on the U.S. dolla
How you got to this result? One-Month 01-06 Three-Month 17-27 Six-Month 57-72
Explain the first way of calibration if we can’t measure that parameter.
What is Meant by ‘Complete’ and ‘Incomplete’ Markets?
1)What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?
Illustrates an example of complete and incomplete markets?
Explain statistical modelling way of determine the model.
Suppose current settlement price on a CME DM futures contract is $0.6080/DM. You contain a long position in futures contract. Presently your margin account contain a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.598
Explain all possible ways of marking over-the-counter contracts.
Letters of Credit: It is a binding document which a buyer can request from his bank in order to pledge that the payment for goods will be moved to the seller. Principally, a letter of credit provides the seller reassurance that he will obtain the paym
18,76,764
1958007 Asked
3,689
Active Tutors
1453574
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!