Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your broker charges $0.0030 per share per trade. The exchange charges $0.0179 per share per trade for removing liquidity and credits $0.0161 per share per

image text in transcribed

Your broker charges $0.0030 per share per trade. The exchange charges $0.0179 per share per trade for removing liquidity and credits $0.0161 per share per trade for adding liquidity. The current best BID price for stock XYZ is $84.01 per share, while the current best ASK price is $84.02 per share. You post an order to buy XYZ at the current best BID price and wait. Shortly after, the best BID and ASK prices move lower (down) by one cent each. Your buy order is executed. Immediately, you post an order to sell XYZ at the new best BID price, and your sell order is executed. What will be your net loss per share to buy and sell XYZ after considering the commissions and any exchange fees or credits? $0.0178 $0.0182 $0.0187 $0.0191 $0.0196

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

101 Recipes For Audit In Psychiatry

Authors: Clare Oakley, Floriana Coccia, Neil Masson, Iain McKinnon, Meinou Simmons

1st Edition

1908020016, 978-1908020017

More Books

Students also viewed these Accounting questions

Question

What are the purposes of collection messages? (Objective 5)

Answered: 1 week ago