Stock XYZ is traded in an order-driven market. The state of the limit order book is...

Transcribed Image Text:

Stock XYZ is traded in an order-driven market. The state of the limit order book is as follows:0:00.0 Buy Volume Price 10.09 10.07 10.06 10.05 10.04 10.02 10.01 10.00 4,500 1,000 10,000 9,000 3,000 100/00 Sell Volume 4,000 Calculate the quoted bid-ask spread and the relative quoted bid-ask spread. Report both of your results to four decimal places. Stock XYZ is traded in an order-driven market. The state of the limit order book is as follows:0:00.0 Buy Volume Price 10.09 10.07 10.06 10.05 10.04 10.02 10.01 10.00 4,500 1,000 10,000 9,000 3,000 100/00 Sell Volume 4,000 Calculate the quoted bid-ask spread and the relative quoted bid-ask spread. Report both of your results to four decimal places.

Answer rating: 100% (QA)

To calculate the quoted bidask spread we need to find the highest bid price an... View the full answer