Below is the top of the limit order book for Microsoft. An investor wants to buy 200 shares. What will be the average price at which the investor’s order will be filled
Below is the top of the limit order book for Microsoft. An investor wants to buy 200 shares. What will be the average price at which the investor’s order will be filled
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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Question
Below is the top of the limit order book for Microsoft. An investor wants to buy 200 shares. What will be the average price at which the investor’s order will be filled? Round your answer to four decimals.
Transcribed Image Text:$
$
Price
Bid
140.50
140.45
Shares
100
150
$
$
Price
Ask
141.00
141.50
Shares
125
225
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shouldn't the remaining 75 shares be $141.50 not $141.45 since we are taking from the ask price?
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