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coal Australia Ltd is a domestic based company engaged in producing coal in the global seaborne market. The company operates the large-scale open cut and

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coal Australia Ltd is a domestic based company engaged in producing coal in the global seaborne market. The company operates the large-scale open cut and underground mines around Australia. The following limit order book was observed for Yancoal on the Bid Quantity Bid Price Ask Price Ask Quantity ($) ($) 4.150 3.58 3.61 9.001 2.813 3.57 3.62 5,132 18.200 3.57 3.62 5.011 128 3.56 3.64 3.126 19.495 3.54 3.65 4.489 11.031 3.52 3.68 6,757 4,267 3.51 3.72 2.861 17,375 3.51 3.73 3,000 5.168 3.49 3.74 15.134 a) What is the current bid-ask spread of this stock? [1 mark] b) Danilo wants to purchase 35,000 shares in Yancoal as he expects a rebound in demand for coal-fired electricity generation in 2022 as global economic conditions are set to improve. What average price would be realised from this trade? [3 marks) c) What is the extra total cost paid by Danilo for this transaction as a result of insufficient liquidity at the best available prices? [2 marks] d) After the execution of this order, what would be the best available price and quantity displayed in this limit order book? (2 marks)

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