Problem 5-3 The following order book exists for a particular stock. The last tra
ID: 2637914 • Letter: P
Question
Problem 5-3
The following order book exists for a particular stock. The last trade on the stock was at $74.15.
If you place a market buy order for 200 shares, at what price will it be filled? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
If you place a market sell order for 200 shares, at what price will it be filled? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
The following order book exists for a particular stock. The last trade on the stock was at $74.15.
Explanation / Answer
a. The buy order of 200 shares will be filled at best sell order of $74.17.
b. The sell order of 200 shares will be filled at best buy order of $74.14.
c. The buy order of 600 shares will be filled by buying 250 shares at $74.17 and 350 shares at $74.18.