Answers: 550.55, 516.98, 33.57

Problem 49.1 MBF stock has a bid price of $10.35 and an ask price of $11.00. Assume there is a 0.1% brokerage commission on the bid or ask price. (a) What amount will you pay to buy 50 shares? (b) What amount will you receive for selling 50 shares? (c) Suppose you buy 50 shares, then immediately sell them with the bid and ask price being the same as above. What is your round-trip transaction cost