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Erik, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alison, is willing to sell 1,500 shares of the same
Erik, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alison, is willing to sell 1,500 shares of the same stock. Unfortunately, Erik and Alison dont know one another and must complete their transactions using the stock exchanges market-making dealer. XYZs market maker is willing to sell her shares for $27.00 per share and purchase additional shares for $26.00 per share. Select the most appropriate values in the following table:
Term | Value |
---|---|
Bid price | |
Ask price | |
Bid-ask spread |
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