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Any help is appreciated! Problem 1 Assume that the limit order book is as shown in the table below. 1) What is the bid-ask spread
Any help is appreciated!
Problem 1 Assume that the limit order book is as shown in the table below. 1) What is the bid-ask spread in cents and basis points of the mid price? 2) If you buy 100 shares with a market order, an immediately sell them also with a market order, what is your P&L? 3) A limit order to buy 150 shares at $34.50 arrives in the market. What transactions occur, and what is the resulting bid-ask spread in cents? 4) A limit order buy order for 2000 shares at $34.53 arrives. List all transactions, and determine the bid-ask spread after the order is executed. Orders offer offer offer offer offer bid bid bid bid bid Shares Price 1900 34.56 1700 34.54 1200 34.53 400 34.52 300 34.51 1000 34.49 1100 34.48 1400 34.47 1500 34.46 2200 34.45Step by Step Solution
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