Realized P&L on a Round Trip

Market Making

P&L

Easy

A dealer buys

40

units at

8.20

, then sells them at

8.45

. Find the realized P&L.

Hint 1

Realized P&L is (sell price - buy price) times size.

Hint 2

The per-unit gain is $0.25$ .

Show worked solution

1. Compute
Multiply the per-unit gain by the size.
$40 \times (8.45 - 8.20) = 10$
2. Key idea
Realized P&L only counts closed positions; open inventory is marked separately.

Answer: 10

1. Compute