A trader has bought shares worth $100 million of an asset that is quoted bid $30, offer $32. The proportional bid-offer spread has a normal distribution with a mean of 0.01 and a standard deviation of 0.025 in historical simulation.
(1) The dollar bid-offer spread is $________________. The proportional bid-offer spread is_____________%. The cost of liquidation in the market is $____________million. The cost of liquidation in the stressed market $___________ million. (Keep two decimal places for all answers).

Answer rating: 100% (QA)

Step 11 The dollar bidoffer spread is 2 because 32 30 2 The proportional bido... View the full answer