An Investment Banker Agrees to a Firm Commitment Offering of Two

question 57

Multiple Choice

An investment banker agrees to a firm commitment offering of two million shares of Ace stock. The offer price is set at $55 and the spread is 50 cents per share. If the stock is actually sold to the public at $53.80,however,what is the investment banker's gain or loss?

• A)$1,400,000 gain
• B)$1,400,000 loss
• C)$500,000 gain
• D)$500,000 loss
• E)None of these options are correct.

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Definitions:

Wet Mount

A preparation of a specimen in a liquid that allows the organisms to remain alive and mobile while they are being identified.

Mordant

A substance, such as iodine, that can intensify or deepen the response a specimen has to a stain.

Parasite

An organism that lives on or in a host organism and gets its food from or at the expense of its host.

Culture and Sensitivity

A laboratory test that involves growing bacteria or other microorganisms from a sample to identify the cause of an infection and determine which antibiotics will effectively treat it.