Equity Investments Q52
0. The limit orders for a stock on market’s book is provided below:
| Buyer | Bid Size(# ofshares) | Limit Price($) | Seller | Offer Size(# ofshares) | LimitPrice ($) |
| 1 | 400 | 18.30 | 1 | 300 | 20.00 |
| 2 | 300 | 18.45 | 2 | 200 | 20.15 |
| 3 | 100 | 18.95 | 3 | 200 | 20.35 |
| 4 | 200 | 19.50 | 4 | 100 | 20.95 |
| 5 | 300 | 9.80 | 5 | 200 |
If a trader submits an immediate-or-cancel limit buy order for 600 shares at a price of $20.35, the most likely average price the trader would pay is:
- Option : B
- Explanation : The limit buy order will be filled first with the most aggressively priced limit sell order and will be followed by filling with the higher priced limit sell orders that are needed up to and including the limit buy price until the order is filled. Average price = [(300 * $20.00) + (200 * $20.15) + (100 * $20.35)] / 600 = $20.11
*/?>
*/?>
*/?>
*/?>