A firm PM puts a buy order to purchase of 35,100 shares of Intuitive Surgical (ISRG) stock with the following timeline:

• ISRG stock price closes at $405.23 per share
• Day one: PM places a limit order for 35,100 shares of ISRG stock at $407.25 per share or better at the opening of trading. ISRGs stock never falls below $407.26 per share and closes at $415.39 per share.
• Day two: PM adjusts her limit order price to $416.75 per share or better. PM is able to buy 28,450 shares of order at $416.75 per share. ISRGs stock continues to climbs to $423.62 per share during the day and the PM moves the limit price to $424.00 per share or better. The order is completed with 6,650 shares of ISRG at $424.00 per share, which is also the closing price of ISRGs stock.
• The commission paid for each block trade is $22,500.

The total implementation shortfall for the ISRG trade is closest to:

0.0%

3.34%

3.5%

1.45%