A market has the following limit orders standing on its book for a stock. The bid...
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A market has the following limit orders standing on its book for a stock. The bid and ask sizes are number of shares in hundreds. Bid Size 400 1,200 200 100 Limit Price $50 $51 $53 $55 $60 $65 $68 Offer Size b. Will the entire order be executed, if at all? 200 200 800 A trader has placed just placed a new limit buy order at $65 of 1,000 shares. Based on the above limit order book, answer the questions. a. What is the market before the new $65 buy order entered the market? c. When and if this order is executed, what will be the executed price(s) and corresponding shares? What is the average price paid for the shares purchased? d. By placing a limit buy order instead of a market buy order, what risk does the trader take? A market has the following limit orders standing on its book for a stock. The bid and ask sizes are number of shares in hundreds. Bid Size 400 1,200 200 100 Limit Price $50 $51 $53 $55 $60 $65 $68 Offer Size b. Will the entire order be executed, if at all? 200 200 800 A trader has placed just placed a new limit buy order at $65 of 1,000 shares. Based on the above limit order book, answer the questions. a. What is the market before the new $65 buy order entered the market? c. When and if this order is executed, what will be the executed price(s) and corresponding shares? What is the average price paid for the shares purchased? d. By placing a limit buy order instead of a market buy order, what risk does the trader take?
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Related Book For
An Introduction to Statistical Methods and Data Analysis
ISBN: 978-1305269477
7th edition
Authors: R. Lyman Ott, Micheal T. Longnecker
Posted Date:
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