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Calculate the market impact cost and the total trade cost for a trader who wishes to sell $250,000 worth of stock KJFA. The order book
Calculate the market impact cost and the total trade cost for a trader who wishes to sell $250,000 worth of stock KJFA. The order book shows the following details:
KJFA Average Daily trade (000s)= $ 2,000
$Trade Size (000s) Quoted Bid-Ask %
Best | 50 | 0.25% |
Second Best | 100 | 0.56% |
Third Best | 150 | 0.84% |
Total | 300 | 0.65% |
Group of answer choices
$900; $2250
$0; $625
$0; $750
$900; $1525
None of the answers are correct
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