A dealer quotes a bid price of $130 and an ask price of $131 for every share of Apple stock.

A dealer quotes a bid price of $130 and an ask price of $131 for every share of Apple stock. If you sell an Apple share to this dealer, at what price will you sell?

$140.2 $131 $140.1 $130

Expert Solution

Bid Price : It is the price at which investor (dealer in this case ) is willing to buy the security.

Ask Price : It is thr price at which investor (dealer in this case ) is willing to sell the security.

In this question dealer qoutes a bid price of $130 and an ask price of $ 131 for every share of Apple stock. It means that dealer is willing to buy at $130 and willing to sell the share at $ 131.

If we sell apple share to this dealer then this dealer will not pay more than $ 130. Therefore the sale price of apple share will be $ 130.

Therefore last option i.e. $130 is correct.

jeff jeffy answered 2 years ago

Suppose you receive the following quotes from a dealer. The bid and ask prices for USD...

Suppose you receive the following quotes from a dealer. The bid and ask prices for USD are MYR4.15 and MYR4.18, respectively. The same dealer also quotes the bid and ask prices for GBP to be at MYR5.10 and MYR5.15. Given the following quotes, calculate the USD cost of obtaining GBP10,000. A. $8,058 B. $8,196 C. $12,200 D. $12,410 Suppose you get the following exchange rate quotes: MYR4.4365/USD, MYR3.34/AUD, and USD0.74/AUD. Determine the triangular arbitrage profit that is possible if you...

Consider the following limit order book for a share of stock. Bid Ask Price Shares Price...

Consider the following limit order book for a share of stock. Bid Ask Price Shares Price Shares $79.75 500 $79.80 500 79.70 900 79.85 400 79.65 700 79.90 900 79.60 1000 79.95 700 78.65 600 a. If a market sell order for 1200 shares comes in, at what price(s) will it be filled? from low to high b. Immediately after the order in a) is executed, what is the bid-ask spread of the stock? (Keep two decimal places.)

Suppose your bank quotes you an ask price of USD 2.50 / GBP anda bid...

Suppose your bank quotes you an ask price of USD 2.50 / GBP and a bid price of USD 2.00 / GBP. If you buy USD 5,000 worth of GBP and immediately sell them back, how many USD do you have left after both transactions?

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

A stock has a bid price of £80.45 and an ask price of £80.55.Suppose you...

A stock has a bid price of £80.45 and an ask price of £80.55. Suppose you shortsell 400 shares of this stock, and then cover the position 6 months later, when the bid and askprices are £78.15 and £78.25. Assume you pay 0.3% brokerage fee on each transaction. Also,assume that you invest the short sale proceeds for the 6 months at 3% per annum interest ratewith semi-annual compounding. What is your profit?

the arizona stock exchange lists a bid price of 1.21 and ask price of 1.40 for...

the arizona stock exchange lists a bid price of 1.21 and ask price of 1.40 for company z . what what price can you buy the stock and what is the dealer bid ask spread? a. 1.40 and bis ask spread is 0.18. b. 1.40 and bid -ask price spread is 0.19 c. 1.21 and bid- ask price spread is 0.18 d. 1.21 and bid ask price spread is 0.19

Today, the stock of Apple(APPL) is quoted as: BID $329 ASK $330 You purchase 300 shares...

Today, the stock of Apple(APPL) is quoted as: BID $329 ASK $330 You purchase 300 shares of APPL. You pay commissions of 0.1% of the purchase amount 3 Months Later, the stock of Apple (APPL) is quoted as: BID $329 ASK $330 You sell your 200 shares of APPL. You pay commissions of $60 per trade. What are your total transactions costs in this “round trip?

The price per share of TSLA today is quoted as follows: Bid: $2, 239.15 Ask: $2,...

The price per share of TSLA today is quoted as follows: Bid: $2, 239.15 Ask: $2, 242.30 with an initial margin requirement of 50%, construct a table to show how far the price of TSLA can rise, before the investor gets a margin call, for the following margin requirements: 25%, 30%, 35%, and 45%. Assume the investor decides to borrow 1, 000 shares of TSLA from the broker.

Suppose a bank quotes $/€ = 1.1045-1.1506. What is the bid-ask spread in percentage? Do not...

Suppose a bank quotes $/€ = 1.1045-1.1506. What is the bid-ask spread in percentage? Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th decimal points. For example, write 12.34 for 12.34%.

Bid and Ask quotes for the USD priced in EUR and for the Norwegian Krone (NOK) priced in USD are given as follows:

Bid and Ask quotes for the USD priced in EUR and for the Norwegian Krone (NOK) priced in USD are given as follows:EUR 0.8478 0.8525/USDUSD 0.1250-0.1310/NOKCalculate the bid and ask cross rates for the NOK priced in EUR terms: S (EUR/bid NOK) and S (EUR/ask NOK).

Question