Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following order book exists for a particular stock. The last trade on the stock was at $22.14. Buy Orders Sell Orders Shares Price Shares

The following order book exists for a particular stock. The last trade on the stock was at $22.14.

Buy Orders Sell Orders
Shares Price Shares Price
250 $22.13 200 $ 22.16
450 22.12 550 22.17
900 22.11 1,000 22.19
250 22.09 250 22.20
200 22.21

a.

If you place a market buy order for 200 shares, at what price will it be filled? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Share price $

b.

If you place a market sell order for 100 shares, at what price will it be filled? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Share price $

c. Suppose you place a market order to buy 500 shares. At what price will it be filled? Choose the appropriate answer.
200 shares at $22.21 and 300 shares at $22.20
200 shares at $22.16 and 300 shares at $22.17
500 shares at $22.14
500 shares at $22.21

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Distressed Debt Analysis Strategies For Speculative Investors

Authors: Stephen Moyer

1st Edition

1932159185, 978-1932159189

More Books

Students also viewed these Finance questions

Question

1. Define mass and mediated communication

Answered: 1 week ago