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Given the order bookfor ABC Limited, ABC Limited: Order book Price (to buy) Quantity (to buy) Price (to sell) Quantity (to sell) $1.00 50 000

Given the order bookfor ABC Limited,

ABC Limited: Order book

Price (to buy) Quantity (to buy) Price (to sell) Quantity (to sell)

$1.00 50 000 $1.10 25 000

$0.90 25 000 $1.20 50 000

$0.80 50 000 $1.30 100 000

Suppose a market order arrives to buy 50 000 shares. What is the cost of the 50 000 shares to the trader?

  1. $ 57 500

  2. $ 87 500

  3. $ 80 000

  4. $ 130 000

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