Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $140. Limit Buy Orders Price Shares 700 $ 139.75 139.70 139.65 139.60 138.65 1,000 700 200 800 Limit Sell Orders Shares Price $ 139.80 125 139.85 125 139.90 350 139.95 125 Required: a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price Next best price b. At what price would the following market buy order be filled? (Round your answer to 2 decimal places.)
Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $140. Limit Buy Orders Price Shares 700 $ 139.75 139.70 139.65 139.60 138.65 1,000 700 200 800 Limit Sell Orders Shares Price $ 139.80 125 139.85 125 139.90 350 139.95 125 Required: a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price Next best price b. At what price would the following market buy order be filled? (Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $140.
Limit Buy Orders
Limit Sell Orders
Price
$ 139.80
Shares
125
125
350
125
Price
$ 139.75
139.70
139.65
139.60
138.65
Shares
700
1,000
Best price
700
200
800
139.85
139.90
139.95
Required:
a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.)
b. At what price would the following market buy order be filled? (Round your answer to 2 decimal places.)
Next best price
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