Question asks for the “implicit transaction cost” of the trade using the VWAP as the price benchmark.
Gives the answer as
Cost = Shares x (executed price - VWAP)
This answer does not take into account the missed trade opportunity cost (3200 shares executed out of an initial order of 10,000).
Am I missing something? Are implicit “transaction” costs different than implicit costs?
Again, from the reading, implicit costs are:
Bid Ask spread
MISSED TRADE OPPORTUNITY COSTS
Thanks in advance!