Suppose the following orders are received by an exchange for Ciscostock:

LimitOrder: Buy 200 shares at $25.20

LimitOrder: Sell 200 shares at $25.90

LimitOrder: Sell 100 shares at $25.65

c. Suppose a market order arrives to buy 200 shares of Cisco. What average price will the buyerpay?

The average price will be:

$25.775

QUESTION:After the market order in (c) clears, what are the new best bid and askprices, and what is the newbid-ask spread forCisco? (Select the best choicebelow.)

A.The best bid priceis: LimitOrder: Sell 100 shares at $25.90; while the best ask priceis: LimitOrder: Buy 100 shares at $25.45. The newbid-ask spread is $0.45.

B.The best bid priceis: LimitOrder: Buy 100 shares at $25.45; while the best ask priceis: LimitOrder: Sell 100 shares at $25.90. The newbid-ask spread is $0.45.

C.The best bid priceis: LimitOrder: Buy 100 shares at $25.45; while the best ask priceis: LimitOrder: Sell 100 shares at $25.65. The newbid-ask spread is $0.20.

D.The best bid priceis: LimitOrder: Buy 200 shares at $25.20; while the best ask priceis: LimitOrder: Sell 100 shares at $25.90. The newbid-ask spread is $0.20. LimitOrder: Buy 100 shares at $25.45