What’s the definition of “the market”?
Hmm
Based on the options I think the most likely choice is C.
The market-making bid is at the highest price, which is 9.95euros, while the market-making offer is the lowest, which is 10.02euros.
Hmm
Why do you ask this sir?
Is there a problem with the way the practice problem is framed?
I asked it in attempt to get you to look at the definition of “the market”.
Once you know the definition, the answer’s straightforward.
Oh I see, thank you sir.
Market is the meeting point for buyer and seller. So the answer is C?
No, it isn’t.
Take a look at the curriculum.
Hi sir,
The market is the best bid and the best offer prices, according to the Curriculum.
The best bid is the highest bid price, and the best offer is the lowest offer price. These are what make the market.
From the practice question, the highest bid price is 9.95euros, and the lowest offer price is 10.02euros.
Bingo!
Thank you, Mr S2000Magician.
My pleasure.