Which of the following statements about bid and asked prices are TRUE?
The bid price is the price a dealer is willing to pay to buy a security.
The asked price is the price a dealer is willing to accept to sell a security.
The bid price for a security is higher than the asked price for the security.
A) I and III.
B) II and III.
C) I, II and III.
D) I and II.
Answer: D) I and II.