To find the liquidity transaction cost and spread risk factor, we must first determine the mid-price and the proportional bid-ask spread:

1. Mid-Price ($P$): P = \frac{\text{Ask} + \text{Bid}}{2} = \frac{32.90 + 32.45}{2} = \`32.675$2`. **Proportional Spread ($s$)**:$s = \frac{\text{Ask} - \text{Bid}}{P} = \frac{32.90 - 32.45}{32.675} = \frac{0.45}{32.675} = 0.013772$3. Spread Risk Factor (SRF) at 99% confidence level: The normal deviate for 99% confidence is $2.33$.$\text{SRF} = 0.5 \times (\text{Mean Proportional Spread} + 2.33 \times \text{Standard Deviation of Spread})$$\text{SRF} = 0.5 \times (0.013772 + 2.33 \times 0.004)$$\text{SRF} = 0.5 \times (0.013772 + 0.00932) = 0.5 \times 0.023092 = 0.011546$(rounds to `$0.01`15$)

2. Transactions Cost per share ($LC$): LC = P \times \text{SRF} = \`32.675 \times 0.011546 = \$0.37`72$

Thus, the Transactions Cost is \`0.3772$ and the Spread Risk Factor is $0.01`15$.