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18. Alibaba stock's current limit order book is as follows: Bid Ask Price Size Ask 125.00 200 Ask 124.80 500 300 Bid Bid 123.50 123.30

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18. Alibaba stock's current limit order book is as follows: Bid Ask Price Size Ask 125.00 200 Ask 124.80 500 300 Bid Bid 123.50 123.30 100 (a) Investor A considers buying 200 shares using a limit order. The investor wants to buy immediately while paying the lowest price possible. What should be then limit order price? [3 points] (b) Suppose that invest A in part (a) does NOT submit after all. Instead, investor B submits a limit order to buy 300 shares at $123.70 per share. Will this order be executed immediately? How does the limit order book change? [3 points] (c) Afterwards, investor C submits a market order to sell 500 shares. What is the average price of the sales? (3 points] 18. Alibaba stock's current limit order book is as follows: Bid Ask Price Size Ask 125.00 200 Ask 124.80 500 300 Bid Bid 123.50 123.30 100 (a) Investor A considers buying 200 shares using a limit order. The investor wants to buy immediately while paying the lowest price possible. What should be then limit order price? [3 points] (b) Suppose that invest A in part (a) does NOT submit after all. Instead, investor B submits a limit order to buy 300 shares at $123.70 per share. Will this order be executed immediately? How does the limit order book change? [3 points] (c) Afterwards, investor C submits a market order to sell 500 shares. What is the average price of the sales? (3 points]

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