Question

12

his Question: 1 pt 12 of 20 (0 complete) This Quiz Last Trade: 421.00 Day's Range: 420.75-434.00 Trade Time: 11:35AM ET 52wk Range: 354.00-592.00 28,201,756 48,885,800 N/A N/A N/A N/A (N/A) Change: Prev Close: Open: Bid: +12.00 (2.77%) Volume: 433.00 Avg Vol (3m): 42700 Market Cap: 420.75 P/E (ttm): 421.25 EPS (tm): Ask: 1y Target Est N/A Div & Yield: How much money would a stock exchange make from buying and selling 500 shares of the stock under the conditions shown above? OA. $3,000 O B. $250 O C. $210,375 O D. $5,875

Answer 1

HI,

For calculating the money that stock would be making, we have to find out buying and selling price of stock.

So a bid price is the price for that exchange market will buy stock

and ask price is price for which a exchange sells stock.

and difference between these bid and ask price will be the profit of exchange

so here bid price =$420.75 ask price = $421.25

so profit on one stock = 421.25-420.75 = $0.50

and profit on 500 shares = 500*0.5 = $250

So option B is correct here.

Thanks