A fund manager decided to purchase 1000 shares of General Statics stock after the market closed with a price of 20. The fund manager placed a limit order at 20.15 to buy 1000 shares before the market opened on the following day. The market opened at 20.10. 400 shares of the limit order quickly executed at 20.10 and 400 more at the limit order price of 20.15. The remaining 200 shares of the order failed to execute and the market closed at 20.20. The commission paid to the broker was 0.04 per share.

a. Calculate the implementation shortfall for this order.

b. Decompose implementation shortfall into its commissions, delay costs, price impact costs, and opportunity costs components.

c. Is it possible for implementation costs to be negative? Why or why not?