Pfizer Inc

question 85

Multiple Choice

Pfizer Inc.(PFE) stock is currently trading on the NYSE with a quoted bid of $18.35 and an ask price of $18.40.At the same time NASDAQ dealers are posting the following bid and ask prices for PFE: Trading with which of these NASDAQ dealers provides an arbitrage opportunity when compared to the NYSE quotes?

• A)Only NASDAQ dealer #1
• B)Only NASDAQ dealer #2
• C)Only NASDAQ dealer #3
• D)Both NASDAQ dealer #1 and dealer #3
• E)None of the above

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Definitions:

Unemployed Resources

Resources that are not currently being utilized in the production of goods or services, often referring to labor or capital lying idle.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced using limited resources efficiently.

Full Employment

Refers to a situation in the economy where all available labor resources are being used in the most efficient way possible.

Unemployment Rate

The proportion of the overall workforce that is not employed but is actively looking for work and ready to take on a job.