Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The market opens at 9 : 3 0 AM , at which point 1 5 , 0 0 0 shares of ABC stock trade at
The market opens at : AM at which point shares of ABC stock trade at $ a share.
You decide to trade to buy shares of ABC at : AM The best bid and ask prices at this time are $ and $ respectively.
Another traders order executes at : AM at a price of $ for shares. The best bid and ask prices at this time are $ and $ respectively.
At : AM shares of your order gets executed at a price of $ The best bid and ask prices at this time are $ and $ respectively.
Another traders order for shares is executed at : PM at a price of $
At : PM another shares of yours are executed at $ The best bid and ask prices at this time are $ and $ respectively.
Finally the market closes at PM when the best bid and ask prices are $ and $ respectively.
Assume that there are no other transactions in ABC stock during the day.
Calculate the closing price of the day benchmark?
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