What price would you expect to pay

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You would like to make an equity investment in Ford (F). Currently, the stock is trading at $13.49, the bid is $13.47x100 and the ask is $13.50x150.

a) If you want to buy 100 shares, what price would you expect to pay?

b) If you want to sell 200 shares, would you expect the price to be higher, lower, or equal to $13.47? Briefly explain.

c) Should the ask price typically be above or below the bid price? Briefly explain why.

Reference no: EM132466491

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