Answer: $490.00

## Explanation To calculate the cost of unwinding the portfolio, we need to consider the bid-offer spread cost for each position: **For the short position ($10,000 with spread 0.030):** - When unwinding a short position, the investor needs to buy back the shares - Cost = 0.5 × Position Value × Spread - Cost = 0.5 × $10,000 × 0.030 = $150 **For the long position ($17,000 with spread 0.040):** - When unwinding a long position, the investor needs to sell the shares - Cost = 0.5 × Position Value × Spread - Cost = 0.5 × $17,000 × 0.040 = $340 **Total cost to unwind the portfolio:** - Total = $150 + $340 = $490 Therefore, the approximate cost to unwind this two-position portfolio is **$490.00**. **Key Concept:** The cost of unwinding a position is calculated as half the bid-offer spread multiplied by the position value, as the investor typically pays half the spread when executing a trade.

Author: LeetQuiz .