6. Which of the following is true when an investor Mary takes a short position in oil futures that matures in three months? (a) Mary has the right to buy the oil at the futures price from her counterparty. (b) Mary has the right to sell the oil at the futures price to her counterparty. (c) Mary has the obligation to buy the oil at the futures price from her counterparty. d) Mary has the obligation to sell the oil at the futures price to her counterparty. 7. Which one of the following is the definition for the stylized evidence of IPO underpric- ing? (a) On average, we observe that the pre-IPO price for a private firm is less than the IPO price. (b) On average, we observe that the IPO price is less than the trading price on the first trading day once its stock is listed on a secondary market. On average, we observe that the pre-IPO price for a private firm is higher than the trading price on the first trading day once its stock is listed on a secondary market. (d) None of the above. 8. Liquid stocks normally have ---- bid-ask spread and ----depth compared to illiquid stocks. (a) larger, more (b) larger, lower (c) smaller, more (d) smaller, lower