Question: Problem 3: Order Boot Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $50.

 Problem 3: Order Boot Consider the following limit order book for

Problem 3: Order Boot Consider the following limit order book for FinTrade 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 followingext market buy order be fllled (thint: This question is Io ask you what wili happen when the next market buy order comes after the situation in question (a) happened)? c. If you were a security dealer, would you want to increase or decrease your inventory of this stock? (Hint consider the buying pressure (number of orders) vs the selling pressure. A security dealer is the market maker who is the counterparty trading with all the traders (including both market order trader and limited order traders etc) to provide

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!