Use the table for the question(s)below.
Consider the following two quotes for XYZ stock:
-How much would you receive if you sold 200 shares of XYZ stock on November 11th?
A)$5050
B)$5040
C)$5186
D)$5200

Question

Use the table for the question(s)below.
Consider the following two quotes for XYZ stock: 
-How much would you receive if you sold 200 shares of XYZ stock on November 11th?
A)$5050 
B)$5040 
C)$5186 
D)$5200

Quizplus · Accepted Answer

According to the table, on November 11th, the stock price for XYZ was $25.20. Using the first quote, the bid-ask spread is $25.10-$25.30. Since we are selling, we would receive the bid price of $25.10 per share. Thus, 200 shares x $25.10 per share = $5,020. But we also have to consider the transaction fee of $20, so the final amount received would be $5,000. Option B is the closest to this amount. Option A is too high and Option C and D are too far off.

Use the Table for the Question(s)below