Question: Three sell orders are placed for a stock today. Listed below are the bid and ask quotes at various times: Time Bid Price Bid Size

Three sell orders are placed for a stock today. Listed below are the bid and ask quotes at various times:

Time Bid Price Bid Size Ask Price Ask Size
10:00 AM $12.10 300 $12.16 400
1:00 PM $12.00 300 $12.07 400
2:00 PM $11.80 300 $11.88 400

The following trades take place:

a. At 10:00 AM, the trader placed an order to sell 100 shares.The execution price was $12.11.

b. At 1:00 PM, the trader placed an order to sell 300 shares.The execution price was $12.00.

c. At 2:00 PM, the trader placed an order to sell 600 shares.The average execution price was $11.75.

Calculate the quoted and effective spreads for each of these orders. Calculate the average quoted and average effective spread.

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