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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 $65. Limit Buy
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $65. Limit Buy Orders Limit Sell Orders Price $64.75 64.50 64.25 64.00 63.50 Shares 700 1,000 700 200 800 Price $65.25 66.50 69.75 73.25 Shares 125 125 350 125 a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price S 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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