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:

Black New York

Black New York refers to the African American history, culture, and community in New York City, which has been influential in the social, cultural, and political development of the city and the nation, with historical significance in movements like the Harlem Renaissance.

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