In a dealer's market, the bid and ask price of a stock is $31.06 and $31.33, respectively.You sell 100 shares and pay a flat fee of $5 to your broker. Your selling price and the totaltransaction cost are:A. $31.06, $13.5B. $31.33, $18.5C. $31.33, $13.5D. $31.06, $18.5

Transaction costs are costs brought about when buying or offering budgetary resources, such as…

Answered: In a dealer's market, the bid and ask…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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In a dealer's market, the bid and ask price of a stock is $31.06 and $31.33, respectively. You sell 100 shares and pay a flat fee of $5 to your broker. Your selling price and the total transaction cost are: A. $31.06, $13.5 B. $31.33, $18.5 C. $31.33, $13.5 D. $31.06, $18.5