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Problem 2. (1 point) XYZ stock has a bid price of $ 36.15 and an ask price of $ 37.85 . Assume there is a
Problem 2. (1 point) XYZ stock has a bid price of $ 36.15 and an ask price of $ 37.85 . Assume there is a 0.2 % brokerage commission. a) What amount will you pay to buy 100 shares? b) What amount will you receive for selling 100 shares? c) Suppose you buy 100 shares, immediately sell 100 shares with the bid asn ask prices being the same in both cases. What is you round-trip transaction cost? Enter answers here: a) Amount to buy 100 shares $ ? b) Amount recieved for 100 shares = $ = ? c) Round-trip transaction cost = $ ? Note: You can earn partial credit on this problem. preview answers
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