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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 Price Shares $54.75 400 54.70 700 54.65 400 54.60 200 53.65 500 Limit Sell Orders Price Shares $54.80 150 54.85 150 54.90 300 54.95 150 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? O Increase O Decrease
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