The Inside Quotes on a Limit Order Book Would Be

question 57

Multiple Choice

The inside quotes on a limit order book would be comprised of the ______.

• A) highest bid price and the lowest ask price
• B) lowest bid price and the lowest ask price
• C) lowest bid price and the highest ask price
• D) highest bid price and the highest ask price

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Definitions:

Cash Flows

The sum of money flowing in and out of a company, particularly influencing its ability to cover short-term obligations.

Cost of Capital

The yield a business needs to generate from its project ventures to preserve its market valuation and draw in capital.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows.

IRR

Internal Rate of Return, a metric used in capital budgeting to estimate the profitability of potential investments.