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On a given day a stock dealer maintains a bid price of $1,000.50 for a bond...

On a given day a stock dealer maintains a bid price of $1,000.50 for a bond and an ask price of $1002.75. The dealer made 10 trades that totaled 600 bonds traded that day. What was the dealer's gross trading profit for this security?
1,950
1,350
1,425
1,180

Solutions

Expert Solution

Bid Price= $1000.50

Ask Price= $1002.75

Bid - Ask Spread = 1002.75 - 1000.50 = 2.25

Total number of Bonds = 600

Dealer's gross trading profit = 2.25 * 600 = $1350 (2nd option will be the answer)

jeff jeffy answered 2 years ago
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