Business, 15.02.2022 04:30 Isabelcastillox9096

You are among the OTC market makers in the stock of Moderna and quote a bid of $102.25 and an ask of $102.50. Suppose that you have a zero inventory. (a) On Day 1 you receive market buy orders for 10,000 shares and market sell orders for 4,000 shares. How much do you earn on the 4,000 shares that you bought and sold? What is the value of your inventory at the end of the day? (Hints: It is possible to have negative inventory, e. g., by short-selling. Further, there is more than one correct way to value an inventory, but please state what assumption your valuation is based on.) (b) Before trading begins on Day 2 the company announces promising vaccine trial results. The quoted bid and ask jump to $110.25 and $110.50, respectively. During Day 2 you receive market sell orders for 8,000 shares and buy orders for 2,000 shares. What is your total profit or loss over the two-day period? What is the value of your inventory at the end of Day 2? (c) What is a market makerâ€™s objective? Is there anything you could have done during Day 1, consistent with a market makerâ€™s objective, that would have improved your performance over the two-day period?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:30

Suppose the following items were taken from the balance sheet of nike, inc. (all dollars are in millions.) 1. cash $ 2,316.7 7. inventory $ 2,245.6 2. accounts receivable 2,786.2 8. income taxes payable 80.3 3. common stock 2,841.1 9. equipment 1,783.8 4. notes payable 291.2 10. retained earnings 6,162.5 5. buildings 3,959.7 11. accounts payable 2,624.6 6. mortgage payable 1,092.3 perform each of the following. classify each of these items as an asset, liability, or stockholdersâ€™ equity, and determine the total dollar amount for each classification. (enter amounts in millions up to 1 decimal place, e.g. 45.5 million.) cash accounts receivable common stock notes payable buildings mortgage payable inventory income taxes payable equipment retained earnings accounts payable assets $ 13092 liability $ 4088.4 stockholdersâ€™ equity $ 9003.6 etextbook and media determine nikeâ€™s accounting equation by calculating the value of total assets, total liabilities, and total stockholdersâ€™ equity. (enter amounts in millions up to 1 decimal place, e.g. 45.5 million.) total assets = total liabilities + total stockholdersâ€™ equity

Answers: 3

Answer

Business, 22.06.2019 09:00

Harry is 25 years old with a 1.55 rating factor for his auto insurance. if his annual base premium is $1,012, what is his total premium? $1,568.60 $2,530 $1,582.55 $1,842.25

Answers: 3

Answer

Business, 22.06.2019 21:20

White truffles are a very prized and rare edible fungus that grow naturally in the countryside near alba, italy. suppose that it costs $200 per day to search for white truffles. on an average day, the total number of white truffles (t) found in alba is t = 20x − x 2 , where x is the number of people searching for white truffles on that day. white truffles can be sold for $100 each. if there is no regulation, how many more people will be searching for white truffles than the socially optimal number?

Answers: 1

Answer

Business, 23.06.2019 07:50

Suppose that two countries, britain and the u.s. produce just one good - beef. suppose that the price of beef in the u.s. is $2.80 per pound, and in britain it is £3.70 per pound. according to ppp theory, what should the $/£ spot exchange rate be? suppose the price of beef is expected to rise to $3.10 in the u.s. and to £4.65 in britain. what should be the one year forward $/£ exchange rate?

Answers: 1

Answer

You know the right answer?

You are among the OTC market makers in the stock of Moderna and quote a bid of $102.25 and an ask of...

Questions