Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial problem. Thanks 3. (Limit-order book) Consider the following limit-order book for FinTrade stock. The last trade in the stock oc- curred at a price
Financial problem. Thanks
3. (Limit-order book) Consider the following limit-order book for FinTrade stock. The last trade in the stock oc- curred at a price of $50. Limit Buy orders Price Shares $49.75 500 $49.50 800 $49.25 500 $49.00 200 $48.50 600 Limit Sell orders Price Shares $50.25 100 $51.50 100 $54.75 300 $58.25 100 a. If a market buy order for 100 shares is submitted now, at what price will it be filled? b. If a trader submits a market sell order for 2,500 shares, what is the average price at which his order is executed? c. If a trader now submits a limit order to sell 200 shares of Fin Trade at $55.00, how will this limit-order book change? Please draw a new table to show yourStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started