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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 $90. 700 Linit
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $90. 700 Linit Buy Orders Price Shares $89.75 89.70 1,800 89.65 700 89.60 200 88.65 800 Limit Sell Orders Price Shares $89.83 125 89.85 125 89.90 350 89.95 125 a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answer to 2 decimal place: 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 O Decrease
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