Consider the limit-order book depicted in the Table below. The last trade in the stock...
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Consider the limit-order book depicted in the Table below. The last trade in the stock took place at a price of $50. Note: the questions are related (e.g. a transaction that is done in part A is carried to the other parts of the question)
Limit-Buy
Price($)
Order
Shares
Limit-Sell
Price($)
Order
Shares
49.75
500
50.25
100
49.5
800
51.5
100
49.25
500
54.75
300
49
200
58.25
100
48.5
600
A market-buy order for 100 shares comes in, at what price will it be filled?
At what price would the next market-buy order be filled (no transaction, just a question)?
Suppose that Phillippe sells 1500 shares at the market. What is his volume weighted average price?
Robert F. submits a limit order to sell 100 shares at 50 dollars? At what price will his order be executed? Compute the new Bid-Ask Spread?
You were the specialist, would you desire to increase or decrease your inventory of this stock?
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