Use the Following Information to Answer the Question(s)below

question 23

Multiple Choice

Use the following information to answer the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of two shares of Apple Inc. (APPL) , one share of Google (GOOG) , and ten shares of Microsoft (MSFT) . Suppose the current stock prices of each individual stock are as shown below:

-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 for following bid and ask prices for PHE: Which of these NASDAQ represents 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:

Contingency of Reinforcement

A concept in behavior analysis that describes how the timing and frequency of reinforcement strategies can influence behavior.

Johari Window

A model used to understand self-awareness, interpersonal relationships, and communication involving known and unknown aspects of oneself to both self and others.

Selective Attention

The process of focusing on a particular object in the environment for a certain period while ignoring irrelevant information.

Disclosure

Disclosure is the act of making new or secret information known, often related to corporate, legal, or personal contexts.