Answer the two questions (a, b) which is shown below.

Now, suppose that Bonnie also knows that the longer she waits, the more risk is involved. In other words, the more likely will the actual fimdamental price move be significantly higher or lower than the expected fundamental Plice move: FPM (low) FPM (high) 2.5 2 1.5 1 0.5 1 2 3 4 56 7 8 9 10 11 12 13 14 15 16 17 18 19 20 (low) (high) b. How does this new information affect Bonnie's decision on how to best execute the order? Explain. (10 points)