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You find that the bid and ask prices for a stock are $10.25 and $10.35, respectively. If you purchase or sell the stock, you must
You find that the bid and ask prices for a stock are $10.25 and $10.35, respectively. If you purchase or sell the stock, you must pay a flat commission of $20. If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars?
$25 | ||
$30 | ||
$55 | ||
$50 |
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