Ahmed own 20000 shares in Company A Currently they trade at $99 for bid and $101 for offer, which typically reflect the average spread conditions. However, the spread has a standard deviation of $3. With a 95% confidence margin, the cost of liquidation under stressed conditions should be closer to: Where = 2.33 at 99% confidence and 1.65 at 95% confidence level (one-tailed): COST OF LIQUIDATION IN STRESSED MARKETS IS?

a. $695

b. $800

c. $900

d.$1650

n 1 ( + ), 2 i=1 n 1 ( + ), 2 i=1