is this a dumb question or am i overanalyzing it? statements, following, regarding

yuoska

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.

luda002

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.

cfa10yrplan

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.

bolligerallstar

C - implicit costs are -0.60? could there ever be negative explicit costs?