The following data provides the current market price, theoretical value and transaction costs for trading a treasury bill. Assume that the trader already owns this bill, and has sufficient trading limit to buy more, if needed. Based on this data, determine the correct trading action to undertake: Market price: $97.85 Theoretical price: $97.82 Brokerage/contract:$0.03 Select one: • a. Do nothing, due to adverse impact of brokerage costs • b. Buy more bills • G. Do nothing, due to positive impact of brokerage costs • d. Sell existing bills holding

The following data provides the current market price, theoretical value and transaction costs for trading a treasury bond. Assume that the trader already owns this bond, and has sufficient trading limit to buy more, if needed. Based on this data, determine the correct trading action to undertake: Market price: $97.80 Theoretical price: $97.85 Brokerage/contract:$0.02 Select one: O a. Do nothing, due to positive impact of brokerage costs • b. Buy more bonds O C. Do nothing, due to adverse impact of brokerage costs • d. Sell existing bond holding

Calculate how much a trader, who enters into a 90-day bank bill futures contract on 20 June with a quoted price of $94.00, will need to pay on settlement date (30 June) if the face value of the underlying bill is $500 000. A. $497 289 B. $499 179 C. $492 711 D. $500 000

A US T-bill quote sheet has 90 day T-bill quotes with a 4.80 bid and a 4.74 ask (quoted yields). If the bill has a $10,000 face value an investor could SELL this bill immediately for _____.

Which of the following entries would be recorded when a company reissues 1,000 shares of treasury stock for $35 per share when they were reacquired at a cost of $36 per share and have a $1 par value?Group of answer choicesCash                                         + $35,000Treasury Stock                         -   36,000Paid in capital, treasury stock  -   1,000Cash                                         + $35,000Treasury Stock                         - $36,000Gain on sale of stock                +    1,000Cash                                         + $35,000Treasury Stock                         +    1,000Paid in capital, treasury stock  +  34,000Cash                                         + $35,000Treasury Stock                         -   36,000Investment income                   +   1,000

You are a principal trader. Your trading limit is 10,000 shares. Your current position is short 9,000 shares. A client wishes to buy 10,000 shares from you. From only the choices below, what price should you make? Select one • a. An offer that is slightly lower than the current market offer • b. An offer that is slightly higher than the current market offer • c. A bid that is slightly lower than the current market bid • d. A bid that is slightly higher than the current market bid O e. A bid that is slightly lower than the current market offer