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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 $68. Limit Buy Orders

Consider the following limit-order book for a share of stock. The last trade in the stock occurred at a price of $68.

Limit Buy Orders Limit Sell Orders
Price Shares Price Shares
$ 67.75 500 $ 68.25 200
67.50 300 68.50 300
67.25 500 71.75 300
67.00 300 75.25 100
66.50 1,000

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. Omit the "$" sign in your response.)

Price $

b.

At what price would the next market buy order be filled? (Round your answer to 2 decimal places.Omit the "$" sign in your response.)

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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