QUESTION 9 Answer the following questions based on the linmit order book for a stock. Bid Ask Price Size Price Size 50.00 400 50.02 500 49.99 400 50.03 300 49.98 600 50.04 400 49.97 500 50.05 450 49.96 400 50.06 300 a. If you placed a market order to sell 1.000 shares, how much would you get for the 1,000 shares? b. What would happen if you placed a limit buy order for 800 shares at $50.01?
QUESTION 9 Answer the following questions based on the linmit order book for a stock. Bid Ask Price Size Price Size 50.00 400 50.02 500 49.99 400 50.03 300 49.98 600 50.04 400 49.97 500 50.05 450 49.96 400 50.06 300 a. If you placed a market order to sell 1.000 shares, how much would you get for the 1,000 shares? b. What would happen if you placed a limit buy order for 800 shares at $50.01?
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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Transcribed Image Text:QUESTION 9
Answer the following questions based on the limit order book for a stock.
Bid
Ask
Price
Size
Price
Size
50.00
400
50.02
500
49.99
400
50.03
300
49.98
600
50.04
400
49.97
500
50.05
450
49.96
400
50.06
300
a. If you placed a market order to sell 1.000 shares, how much would you get for the 1,000 shares?
b. What would happen if you placed
a limit buy order for 800 shares at S50.01?
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