You would like to purchase one class a share of berkshire hathaway through your scottrade brokerage account. scottrade charges a $8 commission for online trades. you log into your account, check the real-time quotes for berkshire hathaway (you see a bid price of $262, 800 and an ask price of $263, 810) and submit your order.
a. what is the current bid/ask spread for berkshire hathaway class a shares?
b. if scottrade routes your buy order to the nyse, where berkshire hathaway is listed, what's the potential minimum your total transaction costs will be?
c. if, instead, scottrade routes your buy order to nasdaq, where berkshire hathaway is not listed, what's the potential maximum your total transaction costs will be?
d. regardless of how your trade is executed, based on the bid/ask spread, what is the market value of your trade?

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.