Question: A continuous auction starts with an empty order book. The market opens and the following sequence of orders arrives: 9:30am, Trader ABC, Buy 1, limit
A continuous auction starts with an empty order book. The market opens and the following sequence of orders arrives:
9:30am, Trader ABC, Buy 1, limit 24
9:31am, Trader DEF, Sell 2, limit 25
9:40am, Trader GHI, Buy 2, limit 20
9:43am, Trader JKL, Buy 5, limit 20
9:52am, Trader MNO, Sell 3, limit 19
10:01am, Trader PQR, Sell 2, limit 18
If the market applies price and size priority, which buy orders would trade?
A MNOs order trades against ABCs order and partially against JKLs order
B The order by ABC is fully executed and the order by DEF is partially executed
C The orders by DEF and GHI are fully executed
D ABC trades with MNO and then GHI trades with MNO
E PQRs order trades against ABCs order and partially against GHIs order
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