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Question 10 (19 marks) Refer to the below limit order book for the stock HSU. The following scenarios are independent of each other. a. (5

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Question 10 (19 marks) Refer to the below limit order book for the stock HSU. The following scenarios are independent of each other. a. (5 marks) If you execute a market buy order of 500 shares of HSU, how much in total will you pay (ignore all other costs)? What is the average price per share you buy? Is there any market impact on this order? Explain. b. (3 marks) Suppose you have purchased 200 shares of HSU previously at a cost of $2.70 per share. If the maximum amount you are willing to lose for this investment is 20% (ignore all other costs), suggest a kind of order you will use for this purpose, with reference to the current market condition as depicted in the table above. (Give the type of order: market/limit/stop loss; buy/sell; and price) c. (3 marks) Suppose you have short sold 100 shares of HSU previously at a cost price of $4.50 per share. If you intend to have a minimum return of 40% for this investment (ignore all other costs), suggest a kind of order you will use for this purpose, with reference to the current market condition as depicted in the table above. (Give the type of order: market/limit/stop loss; buy/sell; and price)

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