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B8. Suppose you face the following limit order book for stock XYZ. For simplicity, other than the limit orders placed in the book, assume you
B8. Suppose you face the following limit order book for stock XYZ. For simplicity, other than the limit orders placed in the book, assume you are the only person trading (so the limit order book is only affected by what you do and not what other traders do - not realistic, but necessary for a test question). Suppose you buy 1000 shares of Stock XYZ using a market buy and then immediately turn around and sell the shares using a market sell. What's your return? [3 marks] Limit buy orders Price ($) Shares 65.00 500 64.75 1000 64.50 600 64.25 300 63.75 700 Limit sell orders Price ($) Shares 65.50 200 66.75 400 70.00 400 73.50 200
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