Problem $1$: Limit Order Book

Consider the following limit order book for XYZ stock on an electronic market. The last trade in the stock

occurred at $$100.$

A$.$ Suppose that you place a market order to buy $100$ shares of XYZ stock. At what price$($s$)$ will your

order be filled? Ignoring transaction costs, what will be your total purchase cost?

B$.$ Suppose instead that you place a market order to buy $300$ shares of XYZ stock. At what price$($s$)$

will your order be filled? Ignoring transaction costs, what will be your total purchase cost?

C$.$ Now suppose that you are extremely bullish on XYZ stock and decide to buy $2,500$ shares. If you

place a market order, will your order be filled? If so$,$ what will be your total purchase cost, ignoring

transaction costs? What is the maximum number of shares that could be purchased right now

with a market order?

D$.$ Instead, suppose that you are extremely bearish on XYZ stock and decide to use a market order

to short sell $2,500$ shares. Will your order be executed? If not, what is the maximum number of

shares that could be sold right now with a market order?

E$.$ Briefly comment on the two forms of liquidity discussed in class of XYZ stock. In particular,

comment on whether and how the liquidity of XYZ stock depends on being a buyer vs$.$ a seller.