Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedFinancial 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 your

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_2

Step: 3

blur-text-image_3

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

Corporate Financial Management

Authors: Glen Arnold, James Pickford

2nd Edition

0582821762, 978-0582821767

More Books

Students also viewed these Finance questions

Question

In what ways does its structure help and hurt Abercrombie & Fitch?

Answered: 1 week ago

Question

variable named UnitPrice and set it to 0

Answered: 1 week ago

Question

=+7. What is the big message you want them to know? (THINK SLOGAN.)

Answered: 1 week ago