Question: Please answer the entire question and show work so I can work. For stock A, you are given: i) The bid price is 800 ii)

Please answer the entire question and show work so I can work.

For stock A, you are given:

i) The bid price is 800

ii) The bid-ask spread is 1.5

iii) The brokers commission is 1%

Lucy purchases 10 shares of stock A and immediately sells them. Determine her round-trip transaction cost (this is the net loss from all transactions).

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