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The following quotes were observed for Brandell Corp (ticker BRAN) on the two dates indicated below. Complete parts a through Next question Brandell Corp BRAN Brandell Corp BRAN October 13 October 14 Bid $ 14.50 Bid $ 14.97 Ask S 14 53 Ask $ 15 03 a Suppose you decide to use a market order to buy 550 shares of BRAN on October 13 and then sell the 550 shares using a market order on October 14. Assuming no brokerage commissions how much of a gain or loss did you make? (Round to tw decimal places.) You made a of $ b Suppose you decide to use limit orders instead of market orders. On October 13, you put in a limit order to buy 550 shares of BRAN at $14 52 per share. On October 14, you put in a limit order to sell 550 shares of BRAN at $14.99 per share Both were executed on their respective days. Assuming no brokerage commissions, how much of a gain or loss did you make? (Round to two decimal places) You made a of $ What are the trade-offs between using market orders and limit orders? you buy at the ask and sell at the bid are executed instantaneously, it may take some time before a counterparty accepts your or it may be the case that your vis never executed Using bid-ask spread is an implied transaction cost Using you can buy closer to the bid and sell closer to the ask; thus you can avoid much or all of the bid-ask spread as a transaction cost

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