1. Instead of taking a chance that only 60 percent of the shares will be sold on the issue date, a bank suggests a price of $95 to the issuing firm. It expects to quote a bid–ask spread of $95–$95.40 and sell 100 percent of the issue.

From the FI’s perspective, which price is better if it expects to sell the remaining 40 percent at the bid price of $97 under the first quote?