Questions: How much money would a stock exchange make from buying and selling 500 shares of the stock under the conditions shown above? A. 3,000 B. 210,375 C. 250 D. 5,875

How much money would a stock exchange make from buying and selling 500 shares of the stock under the conditions shown above?

Identify the bid and ask prices

The bid price is \( \$420.75 \) and the ask price is \( \$421.25 \). The stock exchange makes money from the difference between the bid and ask prices, known as the spread.

Calculate the spread per share

The spread per share is \( \$421.25 - \$420.75 = \$0.50 \).

Calculate the total spread for 500 shares

The total spread for 500 shares is \( 500 \times \$0.50 = \$250 \).

The stock exchange would make \( \boxed{\$250} \) from buying and selling 500 shares of the stock.

The stock exchange would make \( \boxed{\$250} \) from buying and selling 500 shares of the stock. The answer is C.