A dealer in British pounds who thinks that the pound is about to depreciate:

a. may want to lower both his bid price and his ask price.
b. may want to widen his bid-ask spread by raising his ask price and lowering his bid.
c. may want to lower his ask price while raising his bid.
d. none of the options

A dealer in British pounds who thinks that the pound is about to depreciate may want to lower both his bid price and his ask price.

Option: A

Explanation:

The value of the bid corresponds to the top rate a customer pays for a safe. The value which is asked refers to the cheapest rate, which got agreed by a supplier for a service.The variance among these two costs is referred to as range; the narrower the range is, the growing the liquidity of the protection provided.

The average consumer is contending with the bid and asking dissemination as an implied exchange cost. For an instance, if security A's current price quotation is $20.40/$20.45, shareholder X, who is looking into buying A at the current market value, would charge $20.45, whereas shareholder Y, who wants to sell A at the current market value, would receive $20.40.