Consider the following limit- order book of a market- maker. The last trade in the stock took

Question:

Consider the following limit- order book of a market- maker. The last trade in the stock took place at a price of $ 50.

a. If a market- buy order for 100 shares comes in, at what price will it be filled?
b. At what price would the next market- buy order be filled?
c. If you were the specialist, would you desire to increase or decrease your inventory of this stock?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Investments

ISBN: 978-0071338875

8th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

See More Books

Question Posted: Jun 21, 2015 03:37 AM

See More Questions

What expenses are likely to increase or decrease during retirement?
Would you expect insulin to increase or decrease the activity of the enzyme ATP-citrate lyase?
The central limit order book of Air Liquide, a French Firm that trades on the Paris Bourse, is currently as follows: a. Vincent Jacquet wishes to buy 1,500 shares and enters a market order to buy...
Infinity & Beyond, Inc. is a producer of high-tech fashion merchandise. The company's marketing department has identified a new product concept through discussions with potential customers conducted...
In the Sales Transactions database, use Excels filtering capability to extract all orders that used PayPal, all orders under $ 100, and all orders that were over $ 100 and used a credit card.
Why are heat pumps more often used in mild climates than in areas with severely cold winters?
Identify what information entities are likely to provide if they adopt ESG reporting.
Did Manny have the authority to hire additional laborers to work at the ranch after his injury? Why or why not? Grace Tarnavsky and her sons, Manny and Jason, bought a ranch known as the Cowboy...
(a) Equity of KGF Ltd. (KGFL) is Rs. 410 Crores, its debt, is worth Rs. 170 Crores. Printer Division segments value is attributable to 74%, which has an Asset Beta (p) of 1.45, balance value is...
Suppose that 80 percent of all statisticians are shy, whereas only 15 percent of all economists are shy. Suppose also that 90 percent of the people at a large gathering are economists and the other...
You have placed a stop- loss order on Kinross at $ 38, and the current bid and asked prices are $ 37.85 and $ 38.12, respectively. What does your order instruct your broker to do? Given market...
Consider these long-term investment data: i. The price of a 10-year $ 100 par-zero coupon inflation-indexed bonds is $ 84.49. ii. A real estate property is expected to yield 2 percent per quarter...
A high-quality fi nancial report may refl ect: A . earnings smoothing. B . low earnings quality. C . understatement of asset impairment.
The figures show a small block of mass 0.20 kg on a track in the shape of a circular arc. The block is released from rest at a height H above the floor, as shown in Figure 1. The block slides along...
Is it possible to "fly" by holding on to enough helium-filled balloons? Consider a 28-cm-diameter helium balloon at 20C. Use PHe = 0.166 kg/m. What is the net upward force on the balloon? How many...
Your hard of hearing elder needs the TV to produce 6m Pa of pressure in order to hear it. What is this in dB? Assume 20Pa reference level.
What are the three takeaways of evidence base management? How will evidence base management affect leadership? Explain
What is the difference between Developmental Policy Initiatives and Regulatory Policy Initiatives as it relates to Labor Law?
What role can intrinsic rewards play in an organization's overall compensation program? a. They can increase worker pay. b. They can serve as powerful motivators. c. They can help employees achieve...
When is the indirect pattern appropriate, and what are the benefits of using it?
Compare Hersheys earnings per share for 2006 and 2007 with the analysts estimates in Exhibit 11.1. How close were the actual earnings to the estimates?
A firm has the following items on its balance sheet: Cash ........................$ 20,000,000 Inventory ...................... 134,000,000 Notes payable to bank ................ 31,500,000 Common...
A company whose stock is selling for $60 has the following balance sheet: a) Construct a new balance sheet showing the effects of a 3-for-1 stock split. What is the new price of the stock? b)...
The first video I have for your discussion is "Shock and Awe:The Story of Electricity" Part 1 is called "Spark"It runs from 0:00 to about 58 min, on the following link....
Find the present value of a 1 0 - year annuity of $ 8 0 0 0 per annum, given the interest rate of 6 % for the first year, 7 % for the second year, 8 % for the third year, 9 % for the fourth year, and...
The management accounting team of XYZ plc also came up with some questions and requested you to explain/answer them for the upcoming board meeting: 1. A chain of XYZ plc, BHealthy Ltd is a wholesale...

Consider the following limit- order book of a market- maker. The last trade in the stock took

Question:

Limit-Buy Orders Limit-Sell Orders Price (S) 49.75 49.50 49.25 49.00 48.50 Shares 500 800 500 200 600 Price (S) 50.25 51.50 54.75 58.25 Shares 100 100 300 100 8

Step by Step Answer:

a The buy order will be filled at the best limitsell order 5025 b At ...View the full answer

Investments

Students also viewed these Accounting questions