hard · Market Microstructure
An authorized participant (AP) observes that an ETF is trading at $100.25 per share, while the underlying basket of stocks is worth $100.00per share. The AP creates50,000shares.
If creation fees are500 and transaction costs for buying the basket are 0.02 per share, what is the AP's net profit?
- 12,000
- 11,000
- 12,500
- 11,500
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