Why are the bid-ask spreads larger in the forward market than in the s

Why are the bid-ask spreads larger in the forward market than in the spot market?

A) because the forward market is less liquid than the spot market
B) because the spot market is more volatile than the forward market
C) because the forward market is more liquid than the spot market
D) because the spot market is less liquid than the forward market

 

 

ANSWER

Answer: A

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