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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 $85 Limit Buy
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $85 Limit Buy Orders Limit Sell Orders Price Shares 600 Price Shares 200 200 $84.75 84.50 84.25 84.00 83.50 $85.25 86.50 900 600 400 89.75 93.25 200 200 700 a. If a market buy order for 200 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price 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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