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4 traders A,B,C, and D trade stock S using limit orders. Trader A offers to buy 100 shares at $10 per share. B offers to
4 traders A,B,C, and D trade stock S using limit orders.
Trader A offers to buy 100 shares at $10 per share. B offers to buy 200 shares at $10.1. C offers to sell 200 shares at $10.2. D offers to sell 100 shares at $10.1.
1.) Assume that these are all the trades on the stock. What does the order book look like after these orders are processed?
2.) What happens if another trader E submits a market order to buy 50 shares of S?
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