Question: QUESTION 7 Consider the following limit order book for a share of stock. Limit Buy Orders Price Shares Limit Sell Orden Price Shares $49.95 100

 QUESTION 7 Consider the following limit order book for a share

QUESTION 7 Consider the following limit order book for a share of stock. Limit Buy Orders Price Shares Limit Sell Orden Price Shares $49.95 100 $49.90 300 $49.85 100 $49.80 100 $49.75 $49.70 $49.65 $49.60 $48.65 500 900 700 400 600 If a limit sell order for $49.77 and 100 shares come in, would it make the new market? what would be the bid-ask spread? No; $0.02 Yes: $0.02 Yes; $0.05 No; $0.05

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!