Question: Please help! You are a market maker in the stock of Pfizer (PFE) and quote a bid of $43.90 and an ask of $44.10. Suppose

Please help!
Please help! You are a market maker in the stock of Pfizer
(PFE) and quote a bid of $43.90 and an ask of $44.10.

You are a market maker in the stock of Pfizer (PFE) and quote a bid of $43.90 and an ask of $44.10. Suppose that you begin with zero inventory in PFE stock. On Day 1, you receive market sell orders from customers for 10,000 shares and market buy orders from customers for 4,000 shares. Before trading begins on Day 2, the company announces disappointing clinical trial results for its latest vaccine. You reduce your quoted bid and ask fall to $39.90 and $40.10. respectively. After changing your bid and ask you receive 2,000 market sell orders and 8,000 market buy orders from your customers. Please enter all numeric answers in dollars, without the $ sign or comma. Example: enter $100,000 as 100000 . What was your profit or loss on holding your inventory overnight? Enter a profit as a positive number and a loss as a negative number. Hint compute the value of your inventory using a new stock price equal to the midpoint (average) of your new bid and ask: Your

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