Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3 3. (Limit-order book) Consider the following limit-order book for FinTrade stock. The last trade in the stock oc- curred at a price of $50.
3
3. (Limit-order book) Consider the following limit-order book for FinTrade stock. The last trade in the stock oc- curred at a price of $50. (a) If a market buy order for 100 shares is submitted now, at what price will it be filled? 1 Bid Price $49.75 $49.50 $49.25 $49.00 $48.50 Shares 500 800 500 Ask Price Shares $50.25 100 $51.50 100 $54.75 300 $58.25 100 200 600 (b) If a trader submits a market sell order for 2,500 shares, what is the average price at which his order is executed? (c) If a trader now submits a limit order to sell 200 shares of FinTrade at $55.00, how will this limit-order book change? Please draw a new table to show your answer. (Cynogtad nrino borf Mabool, TO the followinnogihlo roturnoStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started