Question
13. Call one full-service broker and one discount broker and find out the transaction costs of implementing the following strategies: a. Buying 100 shares of
13. Call one full-service broker and one discount broker and find out the transaction costs of implementing the following strategies:
a. Buying 100 shares of IBM now and selling them six months from now.
b. Investing an equivalent amount in six-month at-the-money call options on IBM stock now and selling them six months from now.
Here is the information I could find that may help.
TD Ameritrade offers both full-service broker and discount broker services. According to their website the broker assisted transaction costs are $44.99 and the discount broker services are $6.95 per trade.
Current cost of IBM Stock = $124.79
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