1. Suppose that BAC trades in a specialist (a type of market maker) market. Below is the order book for Bank of America (BAC) stock. 

Buy Side		Sell Side
Bid price	Shares	Asked Price	Shares
34.03	2,000	34.18	2,500
34.01	1,500	34.25	1,000
33.98	2,500	34.50	2,000

1. Suppose you have submitted an order to your broker to buy 3,000 shares at market. At what price will your trade be executed?
2. Suppose you have submitted an order to sell 1,500 shares at market. At what price will your trade be executed?
3. Suppose you have submitted a limit order to sell 2,500 shares at $34.02. What will happen?
4. Suppose you have submitted a limit order to buy 1,000 shares at $34.17. What will happen?

Answer rating: 100% (QA)

To determine the execution price for the given scenarios lets analyze the order book for Bank of Ame... View the full answer