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Question
Rehman Sisters, an investment bank, agrees to a firm commitment offering of 2 million shares of Pear Computer stock. The offer price is set at $55 and the spread is 50 cents per share. If the stock is actually sold to the public at $53.80 however, what is Rehman Sisters' gain or loss?a. $1,400,000 gain
b. $1,400,000 loss
c. $500,000 gain
d. $500,000 loss
e. $1,000,000 loss
Answer
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