You would like to buy shares of Nokia (NOK). The current bid and ask quotes are $20.13 and $20.15, respectively. You place a market buy-order for 300 shares that executes at these quoted prices. How much money did it cost to buy these shares?

total cost = $6,045

Explanation:

given data

current bid = $20.13  

ask quotes = $20.15

market buy-order = 300 shares

solution

as here Total Cost to buy 300 NOK shares is express as

Total Cost = Cost per share × Number of shares    1

as here

Bid quotes is rate at which an asset can be bought or sold in market

so that market will buy asset

and quote of $20.15 per share will be the purchase price.

so put value in equation 1 we get

Total Cost = 20.15 × 300

total cost = $6,045

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