You Find That the Bid and Ask Prices for a Stock

question 85

Multiple Choice

You find that the bid and ask prices for a stock are $10.25 and $10.30, respectively. If you purchase or sell the stock, you must pay a flat commission of $25. If you buy 100 shares of the stock 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:

Register

A small, fast storage location within a computer's CPU used to hold data and instructions that are currently being processed.

File

A collection of data stored in one unit, identified by a filename; can represent documents, programs, or other collections of information.

Value

A numerical quantity that is assigned or is determined by calculation or measurement.

Instruction

A command or directive given to a computer or device to execute a specific operation or task.