Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 3-17 Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $70
Problem 3-17 Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $70 Limit Buy Orders Price Shares $69.75 800 69.70 1.100 69.65 800 69.60 200 68.65 900 Limit Sell Orders Price Shares $69.80 120 69.85 120 69.90 200 120 69.95 a If a market buy order for 120 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) b. At what price would the next market buy order be filled? (Round your answer to 2 decimal places.) c. If you were a security dealer, would you want to increase or decrease your inventory of this stock
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started