hard · Market Microstructure mmf-core

A Smart Order Router (SOR) receives a market order to sell 1,000 shares. The consolidated book shows: NYSE Bid 49.99 (Size 200), NASDAQ Bid 49.99 (Size 500), and EDGX Bid 49.98 (Size 1,000). All venues charge a taker fee of 0.003 per share.

If the National Best Offer (NBO) is 50.01, what is the implementation shortfall of this execution relative to the decision-time midpoint?

  1. $8.00
  2. $13.00
  3. $20.00
  4. $16.00

Sign up free to see the explanation and track your rank →

More Market Microstructure mmf-core practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 92,240+ practice questions, 30,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials