Question
The following order book exists for a particular stock. The last trade on the stock was at $60.36. Buy Orders Sell Orders Shares Price Shares
The following order book exists for a particular stock. The last trade on the stock was at $60.36.
Buy Orders | Sell Orders | ||||||||||
Shares | Price | Shares | Price | ||||||||
250 | $60.35 | 200 | $60.38 | ||||||||
150 | 60.34 | 700 | 60.39 | ||||||||
900 | 60.33 | 1,000 | 60.41 | ||||||||
150 | 60.31 | 550 | 60.42 | ||||||||
450 | 60.43 | ||||||||||
a. If you place a market buy order for 100 shares, at what price will it be filled? (Round your answer to 2 decimal places.)
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.)
c. Suppose you place a market order to buy 350 shares. At what price will it be filled? Choose the appropriate answer.
-
200 shares at $60.43 and 150 shares at $60.42
-
350 shares at $60.43
-
350 shares at $60.36
-
200 shares at $60.38 and 150 shares at $60.39
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