Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

would help me to solve the question a to d Question 10 (13 marks) Refer to the below limit order book for the stock QQL.

would help me to solve the question a to d image text in transcribed
image text in transcribed
Question 10 (13 marks) Refer to the below limit order book for the stock QQL. Time 09:55 10:11 09:45 Trader HSU HKB BEA 100 Size 100 300 550 6.40 Price 6.40 6.20 6.00 6.80 Price 6.80 6.95 7.05 300 Size 300 1000 100 Trader WHB CCB Time 09:15 09:30 10:00 The following scenarios are independent of each other. a. (2 marks) If you execute a market buy order of 500 shares of QQL, how much money would you receive? b. (2 marks) If a limit order to sell 700 shares at $6.40 arrives, what would be the new market best bid and ask? e. (3 marks) Suppose at 10:15, one of your clients requests to buy 300 shares of QQL "by the end of the trading day". There are two possible strategies you may take to handle this order. Explain the pros and cons of ONE of the strategies. d. Suppose the following trades or orders occur from 10:12 No.# Time 1 10:33 2 10:40 33 10:57 4 11:00 Trades or Orders A market order to sell 300 shares A market order to buy 200 shares A limit order to sell 1000 shares at $6.85 A limit order to sell 500 shares at $6.70 which was taken (done) immediately at 11:01 A market sell order of 500 shares arrives 5 11:02 6 i) (3 marks) Calculate the volume weighted average price (VWAP) of QOL from 10:35 to 11:02 (3 marks) Which one of the transactions above (No.#) beat the VWAP (for the trader who placed the order)

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

International Finance

Authors: Keith Pilbeam

3rd Edition

1403948372, 978-1403948373

More Books

Students also viewed these Finance questions