Recovering the Ask

Market Making

Quotes and Spreads

Easy

The bid is

49.70

and the full spread is

0.60

. What is the ask?

Hint 1

Full spread is defined as ask minus bid.

Hint 2

Add the spread to the bid.

Show worked solution

1. Rearrange the definition
Since $s = a - b$ , we have $a = b + s$ .
$a = 49.70 + 0.60 = 50.30$
2. Key idea
Spread questions are definition checks; write the definition first, then solve.

Answer: 50.30

1. Rearrange the definition