Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. Consider the following limit order book for XYZ stock. Bid Asked Price Shares Price Shares $ 89.75 700 $89.80 125 89.70 1,000 89.85
3. Consider the following limit order book for XYZ stock. Bid Asked Price Shares Price Shares $ 89.75 700 $89.80 125 89.70 1,000 89.85 125 89.65 700 89.90 350 89.60 200 89.95 125 88.65 800 Round your answers to 2 decimal places. a. What is the inside spread? b. If a market buy order for 125 shares comes in, at what price will it be filled? c. At what price would the following market buy order be filled? d. If you placed a limit order to sell at $89.90, what will happen? e. If you placed a limit order to buy at $89.75, what will happen?
Step 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