Hello, Can anyone correct my understanding as to why the answer should not be choice C for this instead of A as shown in the curriculum. Shouldn’t the bid-ask spread be twice once each for buy and sell? Here is what’s in curriculum:

14 Consider an ETF with the following trading costs and management fees:

●● Annual management fee of 0.40%

●● Round-trip

trading commissions of 0.55%

●● Bid–offer spread of 0.20% on purchase and sale

Excluding compound effects, the expected total holding-period

cost for investing

in the ETF over a nine-month

holding period is closest to:

A 1.05%.

B 1.15%.

C 1.25%.

Solution(from curriculum):

14 A is correct. The expected total holding-period

cost for investing in the ETF

over a nine-month

holding period is calculated as follows:

Total holding-period

cost = Annual management fee + Round-trip

trading commissions + Bid–offer spread on

purchase/sale.

Total holding-period

cost = (9/12) × (0.40%) + 0.55% + 0.20% =

1.05%.