Question 5 (5 points)

Use the information below to fill the hypothetical limit order book below:

A stock exchange receives the message below on limit order transactions for Walmart (WMT) stock

1. BUY Limit Order: 0101, 2:04:02, WMT, BUY, 300, $88.36
2. SELL Limit Order: 0102, 2:04:12, WMT, SELL, 300, $88.99
3. BUY Limit Order: 0103, 2:04:33, WMT, BUY, 100, $88.39
4. BUY Limit Order: 0104, 2:04:27, WMT, BUY, 250, $88.39
5. BUY Limit Order: 0105, 2:04:39, WMT, BUY, 600, $88.42
6. BUY Limit Order: 0106, 2:04:42, WMT, BUY, 50, $88.36
7. SELL Limit Order: 0107, 2:04:43, WMT, SELL, 150, $88.88
8. SELL Limit Order: 0107, 2:04:43, WMT, SELL, 60, $88.85
9. BUY Limit Order: 0107, 2:04:49, WMT, SELL, 80, $88.39
10. SELL Limit Order: 0107, 2:04:52, WMT, SELL, 130, $88.88

			Hypothetical Limit Order Book of Walmart (WMT)
		Bid Side					Ask Side
s/N	Order ID	Time	Bid Size	Bid Price	Ask Price	Ask Size	Time	Order ID	S/N

5 (b) use the information in 5(a) to calculate the dollar spread, relative spread and order imbalance for the NBBO trade

Market order submission: Market order trade immediately at the best available price.

5(c) Show the position of the order book for: (i) Market order, 0108, 2:04:57, WMT, BUY, 150, 500

(ii) Market order, 0108, 2:04:63, WMT, SELL, 700

			Hypothetical Limit Order Book of Walmart (WMT) stock
		Bid Side					Ask Side
s/N	Order ID	Time	Bid Size	Bid Price	Ask Price	Ask Size	Time	Order ID	S/N

5(d) Calculate the average price for the BUY and SELL market orders in question 5(C)