Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $65. Limit Buy Orders Price

image text in transcribed

Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $65. Limit Buy Orders Price Shares $ 64.75 700 64.70 1,000 64.65 700 64.60 200 63.65 800 Limit Sell Orders Price Shares $ 64.80 125 64.85 125 64.90 350 64.95 125 Required: 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 b. At what price would the following 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Monetary Policy And Public Finance

Authors: G. C. Hockley

1st Edition

1138704792, 978-1138704794

More Books

Students also viewed these Finance questions