Question
Asked Jan 14, 2020
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A wide bid-ask spread implies:
an illiquid market
the way the CBOE works
Oa liquid market
O the normal market conditions on stock exchanges
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A wide bid-ask spread implies: an illiquid market the way the CBOE works Oa liquid market O the normal market conditions on stock exchanges

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Expert Answer

Step 1

An illiquid market is a market where assets are not liquid and hence there is a difficulty in their exchange.

Step 2

Wide bid-ask spread means the dealers are facing more risk of loss as there is a larger gap in willingness to pay of one person and willingness to ac...

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