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Question 3 (Trading Costs and Orders) (a) Here is the latest limit order book for the stock BCE Inc. You own 200 shares of BCE
Question 3 (Trading Costs and Orders) (a) Here is the latest limit order book for the stock BCE Inc. You own 200 shares of BCE Inc, which is currently trading at $58.89. You accidentally submit a market-sell order for the 200 shares. You immediately correct your mistake by submitting a market-buy order for 200 shares. What is the cost of this mistake? (b) Suppose that Fincorp trades in a dealer market with bid price equal to $55.25 and ask price equal to $55.50. (i) Suppose an investor has submitted a limit order to buy at $55.55. What will happen? (ii) Suppose another investor has submitted a stop-loss order at price $55.20. What will happen
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