Exercise 6 - A broker offers the following execution options: Time Quantity Price 10:00 100 5.60 10:30 400 5.40 1. They will buy 15000 shares at $5.55 11:00 1100 5.50 2. They will aim for VWAP, conditional on: - They will achieve between 1% better 11:30 3760 5.45 and 1% worse 12:00 1240 5.45 - They will guarantee to fill between 85-100% of your order 12:30 100 5.57 1:00 400 5.47 1:30 400 5.42 What are the range of IS options given this VWAP and price evolution? 2:00 3100 5.52 2:30 3000 5.54 3:00 7000 5.55 Assuming an even distribution, should you sell for $5.55, or take your chances with 3:30 2000 5.56 VWAP? 4:00 18000 5.70