You specialize in analyzing pharmaceutical companies. Tomorrow, the FDA is going to make an announcement about the approval of a pending drug that a certain company produces. You think that the stock of the company has an expected alpha of 0.8% tomorrow. The company's current BID is $50 and its current ASK is $50.2. Ignore commissions for this problem If you decided to enter a 200 share position for one day then exit your position, what is the best estimate of round-trip transactions cost you will pay? $0 $20 $40 O S60 You specialize in analyzing pharmaceutical companies. Tomorrow, the FDA is going to make an announcement about the approval of a pending drug that a certain company produces. You think that the stock of the company has an expected alpha of 0.8% tomorrow. The company's current BID is $50 and its current ASK is $50.2. Ignore commissions for this problem. You decided to enter a 200 share position for one day then exit your position What is the amount of after transactions cost profit you would expect to mako? $20 $40 O $60 SBO You specialize in analyzing pharmaceutical companies. Tomorrow, the FDA is going to make an announcement about the approval of a pending drug that a certain company produces. The company's current BID is $50 and its current ASK is $50.2. Ignore commissions for this problem. You decide to enter a 200 share position for one day then exit your position What would the realized alpha have to be for you to exactly break even on your round-trip trade (assuming the spread remained the same)? O 0.0% O 0.2% O 0.4% 0.6%