A. B. Question 2 Given the order book for ABC Limited, Orders to buy Price 2.00 1.95 1.90 Quantity 10000 5000 5000 Orders to sell Price Quantity 2.10 2000 2.15 20000 2.20 10000 Required With the order book above, suppose a market order arrives to buy 3,000 shares, Al. At what price will the trade occur? A2. What is the cost of the 3,000 shares to the trader? A3. What will the new limit order book look like after the transaction is completed? A4. If the investor sells this 3,000 shares at the price of $2.3 per share one month later, what is the discrete holding period return for investing in this share? With the order book above, suppose a limit order arrives to buy 1000 shares at $2.05, B1. At what price will the trade occur? B2. what will the new limit order book look like after this transaction?
A. B. Question 2 Given the order book for ABC Limited, Orders to buy Price 2.00 1.95 1.90 Quantity 10000 5000 5000 Orders to sell Price Quantity 2.10 2000 2.15 20000 2.20 10000 Required With the order book above, suppose a market order arrives to buy 3,000 shares, Al. At what price will the trade occur? A2. What is the cost of the 3,000 shares to the trader? A3. What will the new limit order book look like after the transaction is completed? A4. If the investor sells this 3,000 shares at the price of $2.3 per share one month later, what is the discrete holding period return for investing in this share? With the order book above, suppose a limit order arrives to buy 1000 shares at $2.05, B1. At what price will the trade occur? B2. what will the new limit order book look like after this transaction?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:A.
B.
Question 2
Given the order book for ABC Limited,
Orders to buy
Price
2.00
1.95
1.90
Quantity
10000
5000
5000
Orders to sell
Price Quantity
2.10
2000
2.15
20000
2.20 10000
Required
With the order book above, suppose a market order arrives to buy 3,000
shares,
Al. At what price will the trade occur?
A2. What is the cost of the 3,000 shares to the trader?
A3. What will the new limit order book look like after the transaction is
completed?
A4. If the investor sells this 3,000 shares at the price of $2.3 per share one
month later, what is the discrete holding period return for investing in this
share?
With the order book above, suppose a limit order arrives to buy 1000 shares at
$2.05,
B1. At what price will the trade occur?
B2. what will the new limit order book look like after this transaction?
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