You are a principal trader. Your trading limit is 20,000 shares. Your current position is short 9,000 shares. You want to maintain a short position. A client wishes to sell 10,000 shares to you. From only the choices below, what price should you make? on Select one: O a. A bid that is slightly higher than the current market bid O b. An offer that is slightly higher than the current market offer • c. An offer that is slightly lower than the current market bid O d. A bid that is slightly lower than the current market bid • e. An offer that is slightly lower than the current market offer

You are a principal trader. The current share price is $1.52/$1.55 Your current position is long 9,000 shares. You want to change to a short position. A client wishes to buy 10,000 shares from you. To achieve this, you would show the client a/an bid offer $1.50 $1.51 $1.52 $1.53 ($1.54 ($1.55 ($1.56 $1.57 $1.58

You are a price maker in a market containing many price-makers. Your current position is zero (i.e. you are not holding any shares) Your objective is to be long shares but are in no hurry to do so. The current market price is $39.75/$42.75. What action should you undertake to achieve your objective? a. Show a price of $40.75/$43.75 to the market b. Sell shares at $39.75 at the market price c. Show a price of $38.75/$41.75 to the market d. Show a price of $39.75/$42.75 to the market e. Buy shares at $42.75 at the market price

A client offers a block-trade to sell 10,000 shares to you at $1.56. Based on the market depth table below, should you accept the offer? 2 Buyers Qty 2.405 10.000 5.000 5,705 5.000 14.700 Price 1.455 11.45 1.42 1.415 1.41 1.40 Price 1.54 1.55 1.59 1.595 1.60 1.63 1,65 1.67 1.68 1.72 Sellers @ty 12,699 15.000 15.000 5,000 1.000 20.000 1.560 5.000 2.500 12.240 Num Select one: O a. No, there is insufficient liquidity on the bid to close the deal at a profit • b. Yes, there is sufficient liquidity on the bid to close the deal at a profit O c. Yes, there is sufficient liquidity on the offer to close the deal at a profit O d. There is insufficient information to make a suitable decision • e. No, there is insufficient liquidity on the offer to close the deal at a profit

You have decided to short sell one share of a stock that currently sells on the market for $25. The most you can make from this trade is: A. An infinite amount B. $50 C. $25 D. $25 minus the lending fee you pay to the broker.

If you want to sell more than the available share and you are patient, what is your best strategy?Group of answer choicesSubmit a limit sell orderSubmit a market sell orderSubmit a limit buy orderSubmit a market sell order