Which of the following is true for limit orders?   a. They face adverse selection risk from noise traders   b. They face adverse selection risk from informed traders   c. They reduce market liquidity    d. All of the above   e. None of the above

5. Using the following table, practice the Expected Monetary Value (EMV), Expected Opportunity Loss (EOL), and Expected Value of Perfect Information (EVPI).  Use the .30 for the probability of a Strong Market, .50 for the probability of a Fair Market, and .20 for the probability of a Poor Market.   Show your selections (highlight your best alternative).  show the work on an excel file.   PROFIT ($)   STRONG MARKET FAIR MARKET POOR MARKET Large facility 550,000 110,000 -310,000 Medium-sized facility 300,00 129,000 -100,000 Small facility 200,000 100,000 -32,000 No facility 0 0 0

Needs Complete typed solution with 100 % accuracy.

The consumer purchase decision process typically begins with information search---resulting from the instantaneous receipt of incoming and unexpected marketing based stimuli. A True В False

When you are long an option and you delta hedge, you want   A. traders talking a lot about other asset classes and ignore your underlying   B. volatility to increase and the underlying to move around a lot   C. the cost of carry to narrow   D. volatility to decrease and the underlying to just stop moving