Question: The effective spread: a. Is defined as twice the signed difference between the trade price and the time-of-trade quotation midpoint. b. Measures the round trip

The effective spread:

a. Is defined as twice the signed difference between the trade price and the time-of-trade quotation midpoint.

b. Measures the round trip liquidity costs.

c. Measures the gross proceeds earned by a liquidity provider on a round-trip trade.

d. All of the above.

e. Only a. and b.

f. Only a. and c.

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