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Securities Trading (continued) Submission Time 10:00 10:01 10:00 Order C: Limit Sell B: Limit Sell A: Limit Sell Price $100.02 $100.00 $100.00 Shares 500 1,000 100 9:58 10:00 10:00 10:01 9:45 D: Limit Buy E: Limit Buy F: Limit Buy G: Limit Buy H: Limit Buy $99.95 $99.93 $99.92 $99.92 $99.90 500 1,200 200 100 10,000 Consider the limit order book for IBM stock shown below. Orders in the limit order book are sorted by price and time priority. Assume there is no dealer in this market, such that bid and ask prices are set only by the outstanding limit orders. Use this information to answer each of the questions below? a) At 10:02, Investor #1 submits a Market Buy order for 300 shares. Describe what would happen to this order. If it is executed, at what price and against which orders would it be executed? What is the bid-ask spread in this market after this order/trade? b) At 10:03, Investor #2 submits a Limit Sell order 200 shares at $99.96. Describe what would happen to this order. If it is executed, at what price and against which orders would it be executed? What is the bid-ask spread in this market after this order/trade? c) At 10:04, Investor #3 submits a Market Buy order for 1,000 shares. Describe what would happen to this order. If it is executed, at what price and against which orders would it be executed? What is the bid-ask spread in this market after this order/trade