Question
Correctly answer each part of question 4. Answer choices have been provided.
4. The stock market AaAa且 A stock market is a public market for trading a companys debt securities equities The bid-ask spread in a dealer market represents the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? O The difference between the closing price of the security and the opening price of the security on the day of the transaction The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it O The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it
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Term Value Bid price Ask price Bid-ask spread $27.50 $38.50 $33.00
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Answer #1

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Answer 4.1 –

  1. Equities
  2. Correct option is : The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it .

Answer 4.2.-

  1. Bid price = 27.5
  2. Ask price=28.2
  3. Bid-Ask spread=0.7

Answer 4.3-Correct answer is 700.

Qty

Rate

a

Buy

1000

27.5

27500

b

Sale

1000

28.2

28200

c=b-a

Profit

700

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