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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 $135. Limit Buy

Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $135.

Limit Buy Orders Limit Sell Orders
Price Shares Price Shares
$134.75 600 $135.25 200
134.50 900 136.50 200
134.25 600 139.75 400
134.00 200 143.25 200
133.50 700

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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