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You buy 1 0 0 shares of stock ABC today with a market order. The limit order book at the time of your trade is
You buy shares of stock ABC today with a market order. The limit order book at the time of your trade is as follows:
tableOrder type,Price,QuantityAsk$Ask$Bid$Bid$
a What is the bidask spread?
b What is the average price you pay for the stock?
c Continuing on the the previous example, assume that you sell the shares in six months. At that time, the order book is as follows:
tableOrder type,Price,QuantityAsk$Ask$Bid$Bid$
The stock has also paid a dividend of $ per share during this period. What is the total return in percent on your position?
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