The market opens at $9$:$30$ AM$,$ at which point $15,000$ shares of ABC stock trade at $$35\mathrm{.}66$ a share.

$$ You decide to trade to buy $1,800$ shares of ABC at $10$:$50$ AM$.$ The best bid and ask prices at this time are $$36\mathrm{.}05$ and $$36\mathrm{.}08,$ respectively.

$$ Another trader$$s order executes at $11$:$25$ AM at a price of $$36\mathrm{.}20$ for $850$ shares. The best bid and ask prices at this time are $$36\mathrm{.}20$ and $$36\mathrm{.}22,$ respectively.

$$ At $11$:$59$ AM$,690$ shares of your order gets executed at a price of $$36\mathrm{.}05.$ The best bid and ask prices at this time are $$36\mathrm{.}20$ and $$36\mathrm{.}05,$ respectively.

$$ Another trader$$s order for $3,000$ shares is executed at $2$:$16$ PM at a price of $$36\mathrm{.}15.$

$$ At $3$:$50$ PM$,$ another $795$ shares of yours are executed at $$36\mathrm{.}03.$ The best bid and ask prices at this time are $$35\mathrm{.}99$ and $$36\mathrm{.}03,$ respectively.

$$ Finally the market closes at $4$ PM$,$ when the best bid and ask prices are $$35\mathrm{.}91$ and $$35\mathrm{.}94,$ respectively.

$$ Assume that there are no other transactions in ABC stock during the day.

Calculate the $$decision time bid ask mid$-$point$$ benchmark?

$1$ point

$36\mathrm{.}165$

$36\mathrm{.}065$

$35\mathrm{.}035$

$35\mathrm{.}165$

Answer rating: 100% (QA)

To calculate the decision time bidask midpoint benchmark we need to find the mi... View the full answer