Consider the following limit- order book of a market- maker. The last trade in the stock took
Question:
a. If a market- buy order for 100 shares comes in, at what price will it be filled?
b. At what price would the next market- buy order be filled?
c. If you were the specialist, would you desire to increase or decrease your inventory of this stock?
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Related Book For
Investments
ISBN: 978-0071338875
8th Canadian Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
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