I am not able to do the question of effective spread and quotted spread
Having difficulty in understanding that topic
Anyone please explain using the question 17 of candidate resources
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
PLease share the entire question (you have attached only the solution)
I have mentioned the question number of it it’s in the candidate resources the question is pretty big
see quoted or inside spread is the difference between best bid and best ask price .Ex- bid price is say 20 and ask price is say 20.50. so bid ask spread or inside spread = 0.50 . and effective spread is the trade price minus the average of best bid and best ask at that time multiply by 2.
I know the concept but in that particular question the answer is not coming correct