If the Firm Commitment Price Is $15 and One Million

question 70

Multiple Choice

If the firm commitment price is $15 and one million shares are sold in the primary market for $13 and then resold in the secondary market for $13.25, what is the underwriter's profit/loss?

• A)-$2,000,000.
• B)$2,000,000.
• C)-$1,750,000.
• D)$1,750,000.
• E)0

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