Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ut weigited Indexes. 4. Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price

image text in transcribed
ut weigited Indexes. 4. Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $50. Limit Buy Orders Limit Sell Orders Price Shares 500 800 500 200 600 Price $50.25 51.50 54.75 58.25 Shares $49.75 49.50 49.25 49.00 48.50 100 100 300 100 a. If a market buy order for 100 shares comes in, at what price will it be filled? b. If a market sell order for 600 shares comes in, at what price will it be filled? c. What would the resulting limit order book look like after the above transactions? d. If a limit order came into sell 500 shares $50.00 what would the new limit order book look like? If a limit order came into sell 500 shares $49.50 what would happen? c

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

Commodity Market Trading And Investment

Authors: Tom James

1st Edition

1137432802, 978-1137432803

More Books

Students also viewed these Finance questions