Consider the following limit- order book of a market- maker. The last trade in the stock took

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Consider the following limit- order book of a market- maker. The last trade in the stock took place at a price of $ 50.
Consider the following limit- order book of a market- maker.

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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Investments

ISBN: 978-0071338875

8th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

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