You would like to purchase 1 class A share of Berkshire Hathaway through your Scottrade brokerage account. Scottrade charges a $6 commission for online trades. You log into your account, check thereal-time quotes for Berkshire Hathaway(you see a bid price of $262,875 and an ask price of $263,790) and submit your order.

a. What is the currentbid/ask spread for Berkshire Hathaway Class Ashares?

b. If Scottrade routes your buy order to theNYSE, where Berkshire Hathaway islisted, what's the potential minimum your total transaction costs willbe?

c.If, instead, Scottrade routes your buy order toNASDAQ, where Berkshire Hathaway is notlisted, what's the potential maximum your total transaction costs willbe?

d. Regardless of how your trade isexecuted, based on thebid/ask spread, what is the market value of yourtrade?