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12 February, 20:28

You would like to buy shares of International Business Machines (BM). The current bid and ask quotes are $103.25 and $103.30, respectively You place a market buy-order for 200 shares that executes at these quoted prices. How much money did it cost to buy these shares? a. $10,330.00

b. $20,650.00

c. $20,660.00

d. None of the options

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  1. 12 February, 22:27
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    c. $20,660.00

    Explanation:

    Given that

    Current bid price = $103.25

    Ask price = $103.30

    Number of shares = 200 shares

    By considering the above information, the amount of money for buying these shares would be equal to

    = Number of shares * ask price

    = 200 shares * $103.30

    = $20,660

    Since the shares are of buy market order, so we consider the ask price only, instead of the current bid price
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