For many IPOs, the lead underwriter has a(an) _______ option, which allows it to allocate an additional 15 percent of the firms shares for a period of up to 30 days after the IPO.

	a.	lockup
	b.	overallotment
	c.	quantitative

d credit default

Regulators put much emphasis on a bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates.

	a.	True
	b.	False

Which of the following is not true regarding overallotment options?

	a.	The option allows the lead underwriter to purchase additional shares at the offer price.
	b.	Overallotment options are rarely used in IPOs today.
	c.	An overallotment option allows the lead underwriter to allocate an additional 15 percent of the shares of a firm engaging in an IPO.
	d.	The lead underwriter may use the shares from an overallotment option to help stabilize the stock price in the days after the IPO.