An underwriter is quoting the following rates for the issue of new securities on behalf of a firm on a firm commitment basis: $64.00-64.25.2,000,000 shares are being offered.
A)The maximum amount that can be earned by the underwriter (ignoring other costs)$1,000,000.
B)The maximum amount that can be earned by the underwriter (ignoring other costs)is $500,000.
C)The minimum amount that can be earned (ignoring other costs)by the underwriter is $0.
D)The minimum amount that can be earned (ignoring other costs)by the underwriter is -$500,000.

Question

Quizplus · Accepted Answer

($64.25 - $64.00)F1F1F1S1F1F1F10 2,000,000 = +$500,000.

An Underwriter Is Quoting the Following Rates for the Issue