5. You buy euros in New York from Deutsche Bank and simultaneously sell them in London to Barclays for a gain. This is an example of (4point) A) Position trading B) Program trading C) Risk arbitrage D) Pure arbitrage E) Hedging 6. An unregistered issue sold to a few large institutional buyers is an example of a (3 point) A) Best efforts offering B) Fully underwritten public offering C) Shelf offering D) Private placement E) SEC Rule 415 offering 7. An investment banker agrees to a firm commitment offering of 1.5 million shares of Bally stock. The offer price is set at $25.50 and the spread is 30 cents per share. If the stock is actually sold to the public at $28.00, however, what is the amount of funds Bally receives? (Ignore any other fees or expenses.) 5 point) A) $31,200,000 B) $30,600,000 C) $30,240,000 D) $37,800,000 E) $28,120,000 8. Characterize each of the following according to the type of risk it primarily represents: 14 point) I. Loan default II. Unexpected deposit withdrawals III. Losses on foreign currency holdings IV. Losses on standby letters of credit V. Reduction in earnings after an interest rate increase