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The following data provides the current market price, theoretical value and transaction costs for trading a treasury bill Assume that the trader already owns this
The following data provides the current market price, theoretical value and transaction costs for trading a treasury bill Assume that the trader already owns this bill, and has sufficient trading limit to buy more, if needed. Based on this data, determine the correct trading action to undertake: Market price: $97.80 Theoretical price: $97.82 Brokerage/contract:$0.01 Select one: a. Do nothing, due to adverse impact of brokerage costs b. Do nothing, due to positive impact of brokerage costs c. Sell existing bills holding d. Buy more bills
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