What is the cost of 100 shares of Jiffy, Inc. stock given that the bid-ask prices are $31.25 – $32.00 and a $15.00 commission per transaction exists?

Question

BlackTom AI · Accepted Answer

Question restatement: What is the cost of 100 shares of Jiffy, Inc. stock given that the bid-ask prices are $31.25 – $32.00 and a $15.00 commission per transaction exists?

Option A: $3125
- Analysis: This uses 100 shares × $31.25 per share, which is the bid price. However, when purchasing, you typically pay the ask price, not the bid price. Additionally, this figure omits the $15 commission, so it is incomplete as the total cost.

Option B: $3140
- Analysis: This seems to add the $15 commission to $3125 (the bid-based cost). But the calculation should be based on the ask price for a purchase, not the bid price, and the correct total should include the full commission after multiplying by the share price. Therefore this amount reflects an incorrect basis for the share price and miscounts the commission.

Option C: $3200
- Analysis: This equals 100 shares × $32.00 per share, which uses the ask price correctly, but it omits the $15 commission. Since a transaction fee applies per transaction, the total would be higher by $15 if a commission is charged.

Option D: $3215
- Analysis: This is 100 × $32.00 plus a $15 commission, which correctly uses the ask price for the purchase and accounts for the per-transaction commission. The calculation aligns with standard trading costs where you pay the market price to buy plus any fixed commission.

Summary: Each option reflects a different aspect of the cost calculation—whether the correct price basis (ask vs bid) is used and whether the commission is included. The only choice that simultaneously uses the proper purchase price and includes the commission corresponds to the total that matches 100 × 32.00 plus 15.

What is the cost of 100 shares of Jiffy, Inc. stock given that the bid-ask prices are $31.25 – $32.00 and a $15.00 commission per transaction exists?

查看解析

登录即可查看完整答案

类似问题

Active traders on Robinhood tend to ...

The expenses involved in actually putting together and executing a deal are called _____.

Transaction costs are likely to be HIGHEST for:

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单