1)For this question, refer to the second tab named "Order Book." It contains data from a fictitious order book, which is the list of orders a clearing house has that are waiting for execution. This includes whether an order is long or short, market or limit, the limit price if applicable, and the number of shares desired. A clearing house determines a price that maximizes the number of shares that will trade. This example is designed so that the clearing price has no partial or ambiguous fulfillment.

a)Find the range of prices that will clear the maximum volume of shares and the number of shares that clear at this price.

b)After a market clears, the bid price is the highest price of any long bid still open. The ask price is the lowest of all the short bids still open. What are the bid and ask prices?

Long/Short Order Type Limit Price Shares long long long long long long long long long short short short short short short limit limit limit limit limit limit limit market market limit limit limit limit market market n/a n/a n/a n/a 60.46 63.73 63.86 63.86 64.69 65.55 66.3 62.52 64.05 65.13 68.96 7600 6200 4200 1600 4700 1900 3300 1000 1700 2300 7500 1100 3800 2300 500