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Required: a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answe Best price b. At what price would the following market buy order be filled? (Round your answer to 2 dècima Next best price c. If you were a security dealer, would you want to increase or decrease your inventory of this stock Increase O Decrease

Required: a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answe Best price b. At what price would the following market buy order be filled? (Round your answer to 2 dècima Next best price c. If you were a security dealer, would you want to increase or decrease your inventory of this stock Increase O Decrease

Essentials Of Investments
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 $65. Limit Buy Orders Price Shares $ 64.75 700 64.70 1,000 64.65 700 200 800 64.60 63.65 Best price Limit Sell Orders Shares 125 125 350 125 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.) Next best price Price $64.80 64.85 64.90 64.95 b. At what price would the following market buy order be filled? (Round your answer to 2 décimal places.) O Increase O Decrease c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?
Transcribed Image Text:Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $65. Limit Buy Orders Price Shares $ 64.75 700 64.70 1,000 64.65 700 200 800 64.60 63.65 Best price Limit Sell Orders Shares 125 125 350 125 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.) Next best price Price $64.80 64.85 64.90 64.95 b. At what price would the following market buy order be filled? (Round your answer to 2 décimal places.) O Increase O Decrease c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?
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