Q6. We have the following order book for stock ABC. BID PRICE (QUOTE) 99.80 99.70 99.50 99.20 99.00 BID QTY 11 ASK PRICE (QUOTE) 100.20 100.30 100.40 ASK OTY 16 20 24 175 233 500 299 100.60 100.90 400 500 a) At what average price will you be able to buy 100 stocks of ABC in you have put in a market order? b) What is the impact cost if calculated from the mid-quote price? c) What will be the last traded price shown by the exchange just after your trade has completed?

Q6. We have the following order book for stock ABC. BID PRICE (QUOTE) 99.80 99.70 99.50 99.20 99.00 BID QTY 11 ASK PRICE (QUOTE) 100.20 100.30 100.40 ASK OTY 16 20 24 175 233 500 299 100.60 100.90 400 500 a) At what average price will you be able to buy 100 stocks of ABC in you have put in a market order? b) What is the impact cost if calculated from the mid-quote price? c) What will be the last traded price shown by the exchange just after your trade has completed?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter8: Financial Options And Applications In Corporate Finance

Section: Chapter Questions

Problem 8SP

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