Question 5-Limit Order Book: a) You follow Cindy's recommendation and place a market order to sell the 300 shares on Sept. 26, 2023, at 9:00am. Given the above limit order book, how much will you cash in after the market order is executed. (Suppose the is no borrowing costs) On September 26, 2023 (1:00pm), the limit order book is the following: Table 5: Stock A limit order book (Sept. 26, 2023 - 1:00pm) Ask Amount 200 450 300 250 Bid Amount 300 450 350 400 Bid Price $6.0 $5.9 $5.6 $5.3 Ask Price $6.2 $6.3 $6.5 $7.0 b) If the transaction of the limit order book is executed at 1:00pm, how much would you have lost/saved by placing a limit sell order at $6.0 instead of the market order executed at 9:00am? Before proceeding with the sell order, your broker reminds you that such a position is highly risky. Therefore, it will create a margin account on which you will have to put $500 in addition to the proceeds from the asset sale. Your brok warns you that if the price of Stock A goes above $6.5, it will trigger a margin call.

Question 5-Limit Order Book: a) You follow Cindy's recommendation and place a market order to sell the 300 shares on Sept. 26,2023 , at 9:00am. Given the above limit order book, how much will you cash in after the market order is executed. (Suppose the is no borrowing costs) On September 26, 2023 (1:00pm), the limit order book is the following: Table 5: Stock A limit order book (Sept. 26, 2023 - 1:00pm) b) If the transaction of the limit order book is executed at 1:00pm, how much would you have lost/saved by placing a limit sell order at $6.0 instead of the market order executed at 9:00am? Before proceeding with the sell order, your broker reminds you that such a position is highly risky. Therefore, it will create a margin account on which you will have to put $500 in addition to the proceeds from the asset sale. Your broker warns you that if the price of Stock A goes above \$6.5, it will trigger a margin call. Question 5-Limit Order Book: a) You follow Cindy's recommendation and place a market order to sell the 300 shares on Sept. 26,2023 , at 9:00am. Given the above limit order book, how much will you cash in after the market order is executed. (Suppose the is no borrowing costs) On September 26, 2023 (1:00pm), the limit order book is the following: Table 5: Stock A limit order book (Sept. 26, 2023 - 1:00pm) b) If the transaction of the limit order book is executed at 1:00pm, how much would you have lost/saved by placing a limit sell order at $6.0 instead of the market order executed at 9:00am? Before proceeding with the sell order, your broker reminds you that such a position is highly risky. Therefore, it will create a margin account on which you will have to put $500 in addition to the proceeds from the asset sale. Your broker warns you that if the price of Stock A goes above \$6.5, it will trigger a margin call