Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Double checking these to see if the answer circled is correct or not. Use the following information for the next 3 questions. Here is an

Double checking these to see if the answer circled is correct or not.

image text in transcribed

Use the following information for the next 3 questions. Here is an NYSE specialist's limit-order book in a hypothetical stock; the current 28.87/29.12. bid/ask spread is Buy Orders Price $28.75 28.62 28.50 shares- 100 200 100 Limit-Sell Orders Price 29.25 29.37 29.50 29.75 eshares 900 700 600 19. If a market sell order for 100 shares comes in. it will be filled at- a) $2925 ) 129.12 c) 28.87 d) 28.75 sell order for 400 shares comes in, and the specialist buvs 200 of those shares, the fourth round lot will be filled at a)) $28.62 b) 29.25 c) 28.50 d) 28.75 21. Assuming random order-flow, the specialist is motivated to take a inventory position in the near future. this stock, at this time, because its price is more likely toin a) long, decrease b) short, increase ) long, increase d) short, 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

Commodity Finance

Authors: Weixin Huang

2nd Edition

0857196650, 978-0857196651

More Books

Students also viewed these Finance questions