Use the fair value from the previous two questions to calculate the follow two questions:

How much transaction cost per share for trading the $35,000$ shares of Avantek would Greg incur relative to the fair value if he sold to Kidder? If Greg later chooses Kidder for trading the remaining shares in the block of $183,000$ shares of Avantek, would his cost per share be the same as the cost per share for the first $35,000$ shares?

Hint: If the true value of the stock is $100$ and a trader sells the stock to the market maker at $95,$ the cost $($relative to the fair value$)$ for the trader is $5.$ Market maker makes a $5-$dollar profit $($relative to the fairvalue$).$

$0$; Not sure whether his cost per share wouldincrease.

$1/8$; Cost per share would not increase.

$1/8$; His cost per share may becomesignificantly bigger for the remaining shares.