Solved

You Are a Dealer and Post a Price of $100

Question 16

Multiple Choice

You are a dealer and post a price of $100.00 to $100.50 for a stock.There are more sell orders than buy orders and you find your inventory is growing.What is the correct way to adjust your quotes?


A) Lower the bid price and then lower the ask price.
B) Lower the ask price and then lower the bid price.
C) Raise the ask price and then raise the bid price.
D) Raise the bid price and then raise the ask price.
E) Do nothing-orders arrive randomly and they will self-adjust.

Correct Answer:

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