medium · Market Microstructure mmf-core
A U.S. pension fund needs to buy EUR $100 million. The interbank mid-market rate is $1.0800. The fund receives quotes from three banks: $1.08030, $1.08025, and $1.08040.
By selecting the best quote over their custodian's original quote of $1.08100, how much does the fund save?
- $7,500
- $75,000
- $100,000
- $25,000
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