Suppose that Investor X executed a sale transaction at 4.22 when the stock was quoted at 4.21

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Suppose that Investor X executed a sale transaction at 4.22 when the stock was quoted at 4.21 bid and 4.27 ask, and that another investor’s subsequent transaction executed 4.23. Calculate the quoted spread, the half spread, the effective half-spread and the realized half-spread for Investor X’s execution.

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