Suppose XYZ Corporation Is Traded on the New York Stock

Multiple Choice

Suppose XYZ Corporation is traded on the New York Stock Exchange.XYZ's closing price on Monday is $20 per share.After the market closes on Monday,XYZ makes a surprise announcement that it has obtained a major new customer.XYZ's stock will likely

A) open at $20 per share on Tuesday and then increase as more investors read the announcement in the Wall Street Journal.
B) remain at $20 per share because in efficient markets the price already reflects all information.
C) open above $20 because the positive news will result in a higher valuation even though the stock has not yet traded.
D) open below $20 because the surprise announcement creates more uncertainty.