Assignment:
Q1. What risks confront dealers in the foreign exchange market? How can they cope with those risks?
Q2. Suppose a currency increases in volatility. What is likely to happen to its bid-ask spread? Why?
Q3. Who are the principal users of the forward market? What are their motives?
Q4. How does a company pay for the foreign exchange services of a commercial bank?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.