You Place an Order with Your Broker to Purchase 1,000

You place an order with your broker to purchase 1,000 shares of the next two IPOs to be offered. Rumor has it that one of them will be overpriced by $3 and the other will be underpriced by $4. The
Offer price on both is $20. Any issue that is underpriced will only be half filled. What is your
Expected dollar return on these two IPOs?

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