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Consider the following limit-order book of a market maker. The last trade in the stock took place at a price of $101. ca Limit-Buy Orders
Consider the following limit-order book of a market maker. The last trade in the stock took place at a price of $101. ca Limit-Buy Orders Price Shares $100.75 500 100.50 400 100.25 500 100.00 300 99.50 600 Limit-Sell Orders Price Shares $101.25 100 101.50 100 104.75 300 108.25 100 a. If a market-buy order for 100 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places. Omit $ 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 $ sign in your response.) Price c. If you were the specialist, would you desire to increase or decrease your inventory of this stock? Increase Decrease
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