
Explanation:
The correct answer is B.
\frac{0.001879 \times 801}{2} + \frac{0.002488 \times 413}{2} = \`$1.26`63 \text{ million}Ultimate access to all questions.
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Q.3944 A liquidity division for HTC bank invests in shares and a commodity whose mid-market position is $801, and $413, respectively. If the proportional bid-offer spread for the shares is 0.001879, and that for the commodity is 0.002488, What is the cost of liquidation in a normal market.
A
2.0982
B
$1.2663
C
$1.8990
D
$2.7660