The available options are:
A. can only place a stabilizing bid at, or below the Public Offering Price
B. can only position trade the stock
C. cannot fill any orders for that security
D. can either resign as a market maker or can act as a passive market maker
Answer:
can either resign as a market maker or can act as a passive market maker
Step-by-step explanation:
Rule 103 of Regulation which deals with Limits On Syndicate Members who are Market Makers requires that a market maker in a stock that is also a syndicate member in an "add-on" offering of that issue, during the 20-day cooling off period "can either resign as a market maker or can act as a passive market maker."
Hence, in this case, the correct answer is "can either resign as a market maker or can act as a passive market maker."