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What is round-trip transaction cost

ABC stock has a bid price of $40.95 and an ask price of $41.05. Assume there is a $20 brokerage commission. Suppose that you buy 100 shares, then immediately sell the 100 shares with the bid and ask prices being as above. What is your round-trip transaction cost?

(a) About $12.50 gain

(b) About $50.00 gain

(d) About $12.50 loss

(e) None of the above

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is round-trip transaction cost

Reference No:- TGS0679085

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is round-trip transaction cost

Reference No:- TGS0679085

Recent Questions Asked Finance Basics

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