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The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to
The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it
Brent, a trader, wants to buy shares of XYZ stock, while a second trader, Amara, is willing to sell shares of the same stock. Unfortunately, Brent and Amara don't know one another and must complete their transactions using the stock exchange's marketmaking dealer. XYZs market maker is willing to sell her shares for $ per share and purchase additional shares for $ per share. Select the most appropriate values in the following table:
tableTermValueBid price,Ask price,Bidask spread,
If the market maker is willing to purchase the entire block of shares from Amara and, from that block, resell shares to Brent, then the market maker's net profit from Brent's transactionexcluding any inventory effectswill be
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