Question

Item9 5 points eBookPrintReferences Check my work Check My Work button is now enabledItem 9Item 9 5 points Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 55.25 55.50 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed?

Answer 1

$55.50

Step-by-step explanation:

Given that

Bid price = $55.25

Ask price = $55.50

The bid price refers to the maximum price that buyer could able to pay for a good

While the ask price refers to the minimum price that seller could take it from the buyer

Based on the above information,

The price at which the trade is executed is equivalent to the ask price i.e $55.50