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Before the arrival of a large order, a firm has the following limit orders standing on its book: Buyer Buy Order Price Sell Order Seller

Before the arrival of a large order, a firm has the following limit orders standing on its book:

Buyer

Buy Order

Price

Sell Order

Seller

Terence

15000

$100.1

Henry

8000

$100.2

Shane

10000

$100.3

$100.4

4000

Helen

$100.5

6000

Sabrina

$100.6

12000

Michael

Buyer Tina submits a market order to buy 15000 units of share. With whom does she trade? What is her average trade price? How does the limit order book look like afterward?

(5 marks)

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