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

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 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

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

An investor owns one thousand shares of Reliance. Around budget time, he gets uncomfortable with the price movements. One contract on Reliance is equivalent to 100 shares. Which of the following will give him the hedge he desires? Buy 5 Reliance future contracts Sell 10 Reliance future contracts Sell 5 Reliance future contracts Buy 10 Reliance future contracts