Consider the following limit-order book for a share of stock. The last trade in the stock occurred

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Consider the following limit-order book for a share of stock. The last trade in the stock occurred 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 a security dealer, would you want to increase or decrease your inventory of this stock?

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Investments

ISBN: 978-0077861674

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: May 04, 2017 05:51 AM

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Consider the following limit-order book for a share of stock. The last trade in the stock occurred

Question:

Limit Buy OrdersLimit Sell Orders Shares 500 800 500 200 600 Price Price 50.25 51.50 54.75 58.25 Shares $49.75 100 49.50 49.25 49.00 48.50 300

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