Question

You would like to buy shares of Coldwater Creek, Inc. (CWTR). The current ask and bid quotes are $21.70 and $21.66, respectively. You place a market buy order for 370 shares that executes at these quoted prices. How much money did it cost to buy these shares?

Answer 1

The total cost of buying 370 shares of Coldwater Creek, Inc. (CWTR) at the ask price of $21.70 per share is $8,029.00.

Step-by-step explanation:

To calculate the total cost of buying 370 shares of Coldwater Creek, Inc. (CWTR) at a market buy order, we need to use the ask price since this is the price at which the market is willing to sell the shares. Given that the ask price is $21.70 per share, the total cost would be calculated as follows:

Total cost = Number of shares × Ask price

Total cost = 370 shares × $21.70 per share

Total cost = $8,029.00

So, the total money it cost to buy 370 shares of CWTR at the quoted ask price is $8,029.00.