You Would Like to Buy Shares of International Business Machines

question 3

Multiple Choice

You would like to buy shares of International Business Machines (IBM) . The current bid and ask quotes are $103.25 and $103.30, respectively. You place a market buy-order for 200 shares that executes at these quoted prices. How much money did it cost to buy these shares?

• A) $10,330.00
• B) $20,650.00
• C) $20,660.00
• D) None of these choices are correct.

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change.

Economic Analysis

A systematic approach to examining the allocation, distribution, and use of resources, often involving trade-off assessments and opportunity cost considerations.

Single Factor

A term in economics and production referring to the focus on one variable or input while analyzing its impact on an output or outcome.

Opportunity Cost

The consequence of choosing a specific option is the preclusion of potential rewards from other possibilities.