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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 $55. Limit Buy
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $55.
Limit Buy Orders | Limit Sell Orders | |||
Price | Shares | Price | Shares | |
$54.75 | 400 | $55.25 | 150 | |
54.50 | 700 | 56.50 | 150 | |
54.25 | 400 | 59.75 | 300 | |
54.00 | 200 | 63.25 | 150 | |
53.50 | 500 | |||
|
a. If a market buy order for 150 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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