HD Bid Ask MM Name Price Size Cum Size Avg Price MM Name Price Size Cum Size Avg Price IEX 358 92 800 800 358 920 IEX 359 00 500 500 359 000 NYSE 358 92 600 1400 358 920 ISLAND 359 00 200 700 359 000 ISLAND 358 88 100 1500 358 917 BATS 359 02 100 800 359 003 ARCA 358 86 100 1600 358 914 NYSE 359 04 100 900 359 007 BATS 358 86 100 1700 358 911 ARCA 359 06 100 1000 359 012 AMEX 354 01 1000 2700 357 096 LL (Lumber Liquidators) Bid Ask MM Name Price Size Cum Size Avg Price MM Name Price Size Cum Size Avg Price IEX 18 62 200 200 18 620 IEX 18 65 900 900 18 650 ISLAND 18 62 100 300 18 620 ISLAND 18 65 300 1200 18 650 NYSE 18 62 100 400 18 620 NYSE 18 65 200 1400 18 650 BATS 18 60 200 600 18 613 BATS 18 69 100 1500 18 653 ARCA 18 58 100 700 18 609 ARCA 18 81 700 2200 18 703 The attached spreadsheet shows the electronic limit order books for two home improvement stocks Lumber Liquidators (LL) and Home Depot (HD) a (3 points) Which of these stocks would you consider to be more liquid Why b (1 point) Suppose you buy 500 shares of HD with a market buy order If your broker requires an initial margin of 50 , how much own cash do you need to have in your brokerage account to make this purchase (Use the electronic limit order book to answer this question as well ) c (1 point) Assume you make the purchase in b Further assume that HD's stock price subsequently declines by 30 Would you get a margin call if the maintenance margin is 25 What would be the return on your investment (not taking into account borrowing costs and dividends) and why is it different from the 30 return of HD Please upload your answers in a clearly labeled spreadsheet that shows your answers as well as supporting calculations limit order book HD LL xlsx

Question

HD Bid Ask MM Name Price Size Cum Size Avg Price MM Name Price Size Cum Size Avg Price IEX 358 92 800 800 358 920 IEX 359 00 500 500 359 000 NYSE 358 92 600 1400 358 920 ISLAND 359 00 200 700 359 000 ISLAND 358 88 100 1500 358 917 BATS 359 02 100 800 359 003 ARCA 358 86 100 1600 358 914 NYSE 359 04 100 900 359 007 BATS 358 86 100 1700 358 911 ARCA 359 06 100 1000 359 012 AMEX 354 01 1000 2700 357 096 LL (Lumber Liquidators) Bid Ask MM Name Price Size Cum Size Avg Price MM Name Price Size Cum Size Avg Price IEX 18 62 200 200 18 620 IEX 18 65 900 900 18 650 ISLAND 18 62 100 300 18 620 ISLAND 18 65 300 1200 18 650 NYSE 18 62 100 400 18 620 NYSE 18 65 200 1400 18 650 BATS 18 60 200 600 18 613 BATS 18 69 100 1500 18 653 ARCA 18 58 100 700 18 609 ARCA 18 81 700 2200 18 703 The attached spreadsheet shows the electronic limit order books for two home improvement stocks  Lumber Liquidators (LL) and Home Depot (HD)  a  (3 points) Which of these stocks would you consider to be more liquid  Why  b  (1 point) Suppose you buy 500 shares of HD with a market buy order  If your broker requires an initial margin of 50 , how much own cash do you need to have in your brokerage account to make this purchase  (Use the electronic limit order book to answer this question as well ) c  (1 point) Assume you make the purchase in b  Further assume that HD's stock price subsequently declines by 30   Would you get a margin call if the maintenance margin is 25    What would be the return on your investment (not taking into account borrowing costs and dividends) and why is it different from the 30  return of HD   Please upload your answers in a clearly labeled spreadsheet that shows your answers as well as supporting calculations  limit order book HD LL xlsx

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Question

HD Bid Ask MM Name Price Size Cum Size Avg Price MM Name Price Size Cum Size Avg Price IEX 358.92 800 800 358.920 IEX

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HD
Bid		Ask
MM Name	Price	Size	Cum Size	Avg Price	MM Name	Price	Size	Cum Size	Avg Price
IEX	358.92	800	800	358.920	IEX	359.00	500	500	359.000
NYSE	358.92	600	1400	358.920	ISLAND	359.00	200	700	359.000
ISLAND	358.88	100	1500	358.917	BATS	359.02	100	800	359.003
ARCA	358.86	100	1600	358.914	NYSE	359.04	100	900	359.007
BATS	358.86	100	1700	358.911	ARCA	359.06	100	1000	359.012
AMEX	354.01	1000	2700	357.096

LL (Lumber Liquidators)
Bid		Ask
MM Name	Price	Size	Cum Size	Avg Price	MM Name	Price	Size	Cum Size	Avg Price
IEX	18.62	200	200	18.620	IEX	18.65	900	900	18.650
ISLAND	18.62	100	300	18.620	ISLAND	18.65	300	1200	18.650
NYSE	18.62	100	400	18.620	NYSE	18.65	200	1400	18.650
BATS	18.60	200	600	18.613	BATS	18.69	100	1500	18.653
ARCA	18.58	100	700	18.609	ARCA	18.81	700	2200	18.703