You are a dealer and post a price of $60.05 to $60.15 for a stock. There are more buy orders than sell orders and you find your inventory is near 0. 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 bid price and then raise the ask price.
d. Raise the ask price and then raise the bid price.
Suppose the interest rate is 6% per year with continuously compounding. Calculate the 9 month zero-coupon bond price
0.9555
0.9560
0.9571
0.9589