Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
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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