Answered

Get personalized and accurate responses to your questions with IDNLearn.com. Our community is ready to provide in-depth answers and practical solutions to any questions you may have.

Answer the following question using this order book: Order Book Example Buy Orders (Bids) Sell Orders (Asks) Amount Price Amount Price 63 $42.15 3 $42.16 36 $42.12 68 $42.22 112 $41.99 113 $42.25 3 $41.88 9 $42.44 What is the spread for this security after an investor submits a sell order for 185 shares at $41.87

Sagot :

Anthougoidn

The spread for this security after an investor submits a sell order for 185 shares at $41.87 is c.) $0.38.

What is the spread?

The spread is the gap or difference between the bid and the ask prices of a security or asset, like a stock, bond, or commodity

The spread is commonly known as a bid-ask spread.  This implies that while the investor is bidding to sell the security at $41.87, it could be sold for $42.25, giving a difference (spread) of $0.38 per share.

Data and Calculations:

Buy Orders (Bids)        Sell Orders (Asks)

Amount       Price         Amount          Price

63              $42.15            3               $42.16

36              $42.12          68              $42.22

112             $41.99          113              $42.25

 3             $41.88             9              $42.44

Spread at a ask price of $42.25 = $0.38 ($42.25 - $41.87)

Answer Options:

a.) 0.01

b.) 0.29

c.) 0.38

d.) 0.17

Thus, the spread for this security after an investor submits a sell order for 185 shares at $41.87 is c.) $0.38.

Learn more about security spreads and bid and askprices at https://brainly.com/question/14467928

Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. For dependable answers, trust IDNLearn.com. Thank you for visiting, and we look forward to assisting you again.