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Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $120. Limit Buy
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $120. Limit Buy Orders Price Shares $119.75 800 119.70 1,100 119.65 800 119.60 200 118.65 900 Limit Sell Orders Price Shares $119.80 120 119.85 120 119.90 200 119.95 120 a. If a market buy order for 120 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price i A T b. At what price would the next market buy order be filled? (Round your answer to 2 decimal places.) Next best price c. If you were a security dealer, would you want to increase or decrease your inventory of this stock? Increase Decrease
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