How can one make a profit form a transaction in light of the bid-ask spread, assuming the
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (12 reviews)
Using the above example if you bought at the ask of 26 to make a profit the bid wou...View the full answer
Answered By
Rukhsar Ansari
I am professional Chartered accountant and hold Master degree in commerce. Number crunching is my favorite thing. I have teaching experience of various subjects both online and offline. I am online tutor on various online platform.
5.00+
4+ Reviews
17+ Question Solved
Related Book For
Introduction To Derivatives And Risk Management
ISBN: 9781305104969
10th Edition
Authors: Don M. Chance, Robert Brooks
Question Posted:
Students also viewed these Finance questions
-
In light of the full disclosure principle, investors and creditors need to know the balances for assets, liabilities, and equity, as well as the accounting policies adopted by management to measure...
-
The Legal Environment Dimension In light of the analysis in this case, what option is left to those who believe that terminally ill patientsnot the governmentshould make the decision about whether to...
-
1. Incentive to Raise Prices after a Merger. Consider the application Heinz and Beech-Nut Battle for Second Place. Suppose the merger of two firms will reduce the price elasticity of demand for each...
-
The following are some examples of typical business transactions: 1. Purchased office equipment on credit. 2. The owner contributed capital. 3. Purchased office furniture for cash. 4. Received...
-
Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.65 and a book value of equity of $12.05 per share. a. Using the average P/E multiple in Table 9.1, estimate KCP's share price. b....
-
Write C code for a producer/consumer program that takes one value from one input queue, another value from another input queue, and puts the sum of those two values into a separate queue.
-
Describe the importance and contents of medical records.
-
Leisure is an inferior good for Horace. a. Use indifference curves to show the income and substitution effects of an increase in Horaces wage rate. b. Could Horaces labor supply curve be...
-
Many of the strategies used in email and content marketing raise legal, ethical, and cultural questions. While some practices are clearly unethical or illegal, others straddle the line, requiring...
-
IBS is a global provider of point-of-sale systems and related services that enable businesses to accept electronic payments. As a new hire in the companys international headquarters accounting...
-
Why is the bid-ask spread a transaction cost?
-
What is the difference between an initial margin and a maintenance margin?
-
Define relationships. List some examples of relationships that exist between entities.
-
Explain why you were able to achieve or not achieve your goals what were the causes of your better or weaker-than-expected performance in the Bike stimulation?
-
1. Explain why Simulation is used in place of Statistics or BIG DATA? 2. Simulation is said to be a way of creating Virtual Knowledge. Explain what this means. Refer to Inductive Reasoning in your...
-
Do you find yourself unconsciously checking your phone or certain apps? What emotions seem to trigger this behavior? Do you notice a link between your use of certain technologies and how you feel, or...
-
Explain the Brand value for brand ( smart city infrastructure ) Efficiency , sustainable , Innovation , higher economic growth, Community engagement ? and the target market for smart city...
-
What is the Smart City Infrastructure ? and is the Smart City Infrastructure application ? how we can use the Smart City Infrastructure application ?
-
How can an application of personal finance skills increase your wealth?
-
Suppose the concentration of glucose inside a cell is 0.1 mm and the cell is suspended in a glucose solution of 0.01 mm. a. What would be the free energy change involved in transporting 10-o mole of...
-
A Treasury bond that matures in 10 years has a yield of 6 percent. A 10-year corporate bond has a yield of 8 percent. Assume that the liquidity premium on the corporate bond is 0.5 percent. What is...
-
The real risk-free rate is 3 percent, and inflation is expected to be 3 percent for the next 2 years. A 2-year Treasury security yields 6.2 percent. What is the maturity risk premium for the 2-year...
-
The real risk-free rate is 3 percent. Inflation is expected to be 3 percent this year, 4 percent next year, and then 3.5 percent thereafter. The maturity risk premium is estimated to be 0.0005 = (t =...
-
How does the implementation of a centralized database system impact the efficiency and data accuracy in a large retail organization?
-
Identify some processes related to a workplace, assess the benefits and concerns that may arise as a result of the relative sizes of P-time with respect to D-time. In a table include the benefits and...
-
industry competitors and customers analysis & develop a communications pla. Choose any company and analyze its industry, competitors and customers. Then either present theirs communications plan or...
Study smarter with the SolutionInn App