Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 3-8 Consider the following limit-order book for a share of stock. The last trade in the stock occurred at a price of $52 Limit
Problem 3-8 Consider the following limit-order book for a share of stock. The last trade in the stock occurred at a price of $52 Limit Buy Orders Price Shares $ 51.75 500 51.50 300 51.25 500 51.00 200 50.50 600 Limit Sell Orders Price Shares $ 52.25 100.00 52.50 100.00 55.75 300.00 59.25 100.00 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.) Price b. At what price would the next market buy order be filled? (Round your answer to 2 decimal places.) Price c. If you were a security dealer, would you want to increase or decrease your inventory of this stock? Increase O Decrease
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