11. If a dealer bought 20,000 shares of stock at $25 per shares, then sold 5,000 of them at 25.50 per share and 15,000 of them at 25.25 per share. (6 point) a) What is the dealer’s gross profit? b) What is the dealer’s average bid-ask spread?

Respuesta :

Answer:

A) Gross Profit = 5000 x (25.50 - 25) + 15000 x (25.25 - 25) = 6250  

B) Avg Bid Price = 5000/20000 x 25.50 + 15000/20000 x 25.25 = 25.3125

Ask price = 25.0

Avg Bid-ask price = 0.3125