In which of the following situations may a broker/dealer enter an order for a customer to sell a stock long?
I. The broker/dealer has reason to believe that the customer owns the stock and will deliver it promptly.
II. The security is carried in the customer's account at the broker/dealer.
III. The customer owns a bond convertible into the stock and has issued conversion instructions.
IV. The customer owns a call option on the stock and has exercised the call.
A) II and IV.
B) I, II, III and IV.
C) I and II.
D) I and III.
Answer: B) I, II, III and IV.