You Find That the Bid and Ask Prices for a Share

question 32

Multiple Choice

You find that the bid and ask prices for a share are $10.25 and $10.30 respectively. If you purchase or sell the share you must pay a flat commission of $25. If you buy 100 shares of the share and immediately sell them, what is your total implied and actual transaction cost in dollars?

• A)$50
• B)$25
• C)$30
• D)$55

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Definitions:

Chordate Features

Distinctive characteristics of the Chordata phylum, including a notochord, a dorsal hollow nerve cord, pharyngeal slits, and a post-anal tail, at some stage of development.

Amnion

Extraembryonic membrane of birds, reptiles, and mammals that forms an enclosing, fluid-filled sac.

Dogfish Shark

The dogfish shark is a type of small to medium-sized shark belonging to the family Squalidae, often found in both deep and shallow waters.

Bony Fish

A group of fish characterized by having a skeleton primarily composed of bone rather than cartilage.