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The following questions regarding trade execution should be answered independently of each other and relate to the following limit order book: Top of the limit
The following questions regarding trade execution should be answered independently of each other and relate to the following limit order book: Top of the limit order book Shares Price 125.90 3600 1400 125.50 2200 125.00 200 Asks 124.90 124.30 400 100 124.20 Bids 700 123.30 1500 123.15 1800 123.10 2300 123.00 a) If you buy 200 shares with a market order and immediately (i.e., before any new orders arrive or any existing orders are cancelled) sell them with a market order, then what is your P&L? P&L= 340.00 * (in $, use two decimals; positive number for profit, negative for loss) b) A trader sends a limit order to buy 1000 shares for $125.00. What is the average filling price? Determine the bid- ask spread after the transaction. 125.84 * (in $, use two decimals) 0.84 * in $, use two decimals)
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