Which of the following is NOT a part of the costs associated with traditional market entry and exit? A) Administrative fees B) Commission fees C) Bid-ask spreads D) Derivatives pre... Which of the following is NOT a part of the costs associated with traditional market entry and exit? A) Administrative fees B) Commission fees C) Bid-ask spreads D) Derivatives premiums
Understand the Problem
The question is asking us to identify which one of the listed options is not considered a cost associated with traditional market entry and exit. It requires understanding the different fees and costs that come with market transactions.
Answer
D) Derivatives premiums
The final answer is D) Derivatives premiums
Answer for screen readers
The final answer is D) Derivatives premiums
More Information
Traditional market entry and exit costs primarily include administrative fees, commission fees, and bid-ask spreads. Derivatives premiums are specific to derivatives trading, not general market entry and exit.
Tips
A common mistake is to confuse specific trading costs with general market entry and exit costs.
Sources
- What Are Transaction Costs? Definition, How They Work, and Example - investopedia.com
- What Is a Bid-Ask Spread, and How Does It Work in Trading? - investopedia.com
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