Question
onsider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $75. Limit Buy
onsider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $75. Limit Buy Orders Limit Sell Orders Price Shares Price Shares $74.75 500 $75.25 100 74.50 800 76.50 100 74.25 500 79.75 250 74.00 200 83.25 100 73.50 600 a. If a market buy order for 100 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price $ b. At what price would the next market buy order be filled? (Round your answer to 2 decimal places.) Next best price $ c. If you were a security dealer, would you want to increase or decrease your inventory of this stock? Increase Decrease
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