What is the formula for calculating the missed opportunity amount?

The formula for calculating the missed opportunity amount focuses on quantifying the cost associated with not executing an order fully. When you consider the percentage of the order that was not filled, this reflects the unrealized portion of the investment that could have been made at the original decision price. Multiplying this percentage by the price difference to the original decision price gives a clear measure of the cost of the missed opportunity.

This approach captures the essence of opportunity cost, as it quantifies not only the portion of the order left unexecuted but also the potential financial impact based on the difference between what could have been earned at the decision price versus the market price at which the order was ultimately executed or not executed at all. By determining how much of the order was unfilled and the profit that would have been realized, this method accurately assesses the financial consequence of the incomplete transaction.

In contrast, other options do not directly relate to the opportunity cost associated with unfilled orders. For example, calculating execution costs or market share does not address the specific scenario of opportunity loss linked to partially filled orders. Thus, option B is the most accurate representation of how to calculate the missed opportunity amount.