Question
ABC stock has a bid price of $40.97 and ask price of $41.05. Assume there is a 0.25% brokerage commission. If you buy 100 shares
ABC stock has a bid price of $40.97 and ask price of $41.05. Assume there is a 0.25% brokerage commission. If you buy 100 shares and then immediately sell the 100 shares with the bid and ask prices being the same in both cases, what is your round-trip transaction cost?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
