The following trade quotes were observed during the trading…
The following trade quotes were observed during the trading day BID Ask Time Price Size Price Size 10:00am $12.10 300 $12.16 400 1:00pm $12 300 $12.07 400 2:00pm $11.8 300 $11.88 400 Assume the following trades take place At 10:00 am the trader placed the order to sell 100 shares. The execution price was $12.11. At 1:00 pm the trader placed an order to sell 300 shares. The execution price was $12.00. At 2:00 pm the trader placed an order to sell 600 shares. The average execution price was $11.75The weighted average effective spread is