标题: is this a dumb question or am i overanalyzing it? [打印本页] 作者: yuoska 时间: 2013-4-4 01:19 标题: is this a dumb question or am i overanalyzing it?
If the volume-weighted average price (VWAP) during a day was $21 and 100 shares were bought at $20.40, which of the following statements regarding the costs of trading is most accurate?
A) The implicit costs are $60.
B) The explicit costs are -$60.
C) The implicit costs are -$60.作者: bolligerallstar 时间: 2013-4-4 01:23
C - implicit costs are -0.60? could there ever be negative explicit costs?作者: cfa10yrplan 时间: 2013-4-4 01:27
Yeah you’re over analyzing it.
Explicit costs are hard numbers like trading costs and are easily observable and don’t need to be compared to find out.作者: luda002 时间: 2013-4-4 01:31
Your implicit cost is -60 meaning that you are $60 to the good. Explicit is your commissions.
So it’s:
Explicit Costs (commissions)
Realized Gain or Loss
Delay Costs
Missed Opportunity Cost
In this case it’s a realized gain of $60.
