Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $50. Limit Buy Orders Limit Sell Orders Price Shares Price Shares $ 49.75 500 $ 49.80 100 49.70 900 49.85 100 49.65 700 49.90 300 49.60 400 49.95 100 48.65 600 Required: a. If a market buy order for 100 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.) c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?
Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $50. Limit Buy Orders Limit Sell Orders Price Shares Price Shares $ 49.75 500 $ 49.80 100 49.70 900 49.85 100 49.65 700 49.90 300 49.60 400 49.95 100 48.65 600 Required: a. If a market buy order for 100 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.) c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?
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
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Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $50.
| Limit Buy Orders | Limit Sell Orders | ||
|---|---|---|---|
| Price | Shares | Price | Shares |
| $ 49.75 | 500 | $ 49.80 | 100 |
| 49.70 | 900 | 49.85 | 100 |
| 49.65 | 700 | 49.90 | 300 |
| 49.60 | 400 | 49.95 | 100 |
| 48.65 | 600 |
Required:
a. If a market buy order for 100 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.)
c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?
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