Transaction costs You would like to purchase one Class A share of Berkshire Hathaway through your TD Ameritrade brokerage account.

TD Ameritrade advertises a $$7$ commission for trades using their phone$-$based interactive voice response system. You call and learn that

the bid price is $$262,875\mathrm{.}00$ and the ask price is $$263,750\mathrm{.}00,$ and you submit your order for one share.

a$.$ What is the current bid$/$ask spread for Berkshire Hathaway Class A shares?

b$.$ If TD Ameritrade routes your buy order to the NYSE, where Berkshire Hathaway is listed, what's the potential minimum your total

transaction costs will be$?$

c$.$ If$,$ instead, TD Ameritrade routes your buy order to NASDAQ, where Berkshire Hathaway is not listed, what's the potential maximum your

total transaction costs will be$?$

d$.$ Regardless of how your trade is executed, based on the bid$/$ask spread, what is the market value of your trade?