Question: SShow work with formulas Given the below order book for XYZ stock, answer the following questions Bid Ask Price 37.10 37.00 36.80 36.30 Size 1800

SShow work with formulas Given the below order book for XYZ stock,SShow work with formulas

Given the below order book for XYZ stock, answer the following questions Bid Ask Price 37.10 37.00 36.80 36.30 Size 1800 1100 Price 37.70 37.90 38.00 38.20 Size 2300 1600 900 700 300 800 1. If you submit a market order to buy 5000 shares of XYZ stock, what is the average price you will pay per share? 2. If a market order to sell 3000 shares is submitted, what's the average price per share? 3. If a limit buy order has an execution price of 37.50 and a size of 1000, will it be executed, and if so, at what price will it be executed? 4. If you placed a limit sell order with execution price of 37.00 and size of 1200, will it be executed, and if so, at what price will it be executed? 5. A common trading technique called "volatility capturing" involves the use of limit buy order at a lower price, and another limit sell order at a higher price. Explain how it works. (Hint: compare its performance with low and high volatility)

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