A bank customer expecting to pay its Brazilian supplier BRL 100 million asks Alpha Bank to buy Australian
dollars and sell Brazilian reals. Alpha bank does not hold reals so it asks for a quote to buy Brazilian reals in
the market. The market rate is 100. The bank quotes a selling rate of 101 to its customer and sells the real at
this quoted price. Then the bank immediately buys the real at the market rate and completes foreign exchange
matched transaction. What is the impact of this transaction on the bank's risk profile?

All of the four following exotic options are path-independent options, EXCEPT:

By lowering the spread on lower credit quality borrowers, the bank will typically achieve all of the following
outcomes EXCEPT:

A risk manager is analyzing a call option on the GBP with a vega of 0.02. When the perceived future volatility
increases by 1%, the call option

All of the following factors generally explain the equity bid-offer spread in a market EXCEPT: