Brent, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Brent, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Amara, is willing to sell 1,500 shares of the same stock Unfortunately, Brent and Amara don't know one another, and must complete their transactions using the stock exchange's market-making dealer. XYZ's market-maker is willing to sell her shares for $23.15 per share and purchase additional shares for $22.75 per share. Select the most appropriate values in the following table: Value Term Bid price Ask price Bid-ask spread If the market-maker is willing to purchase the entire block of 1,500 shares from Amara and, from that block, resell 1,000 shares to Brent, then the market-maker's net profit from Brent's transaction-excluding any inventory effects-will be
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
