What is implied about trader beliefs by his price

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Reference no: EM131498841

Suppose that most traders are trading SF/$ at SF 1.1302 - 1.1306. If a trader is quoting a small figure of 03-07, what is implied about the trader's beliefs by his prices?

A. The one trader thinks the dollar will appreciate.

B. The one trader thinks the SF will depreciate.

C. The one trader thinks the dollar will depreciate.

D. Both A and B are correct.

E. Cannot be determined with the information given.

Reference no: EM131498841

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