exec2 question 3

3. value 10.00 points Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $50. Limit Buy Orders Limit Sell Orders Price $49.75 49.50 49.25 49.00 48.50 Shares 500 800 500 200 600 Price $50.25 51.50 54.75 58.25 Shares 100 100 300 100 a. If a market buy order for 100 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price $ b. At what price would the next market buy order be filled? (Round your answer to 2 decimal places.) Next best price c. If you were a security dealer, would you want to increase or decrease your inventory of this stock? $ Increase Decrease References eBook & Resources Worksheet Learning Objective: 03-03 Describe trading practices in dealer markets, 22 stv W