Question

You are given the following limit order book for the stock of Apple Inc. No trading...

You are given the following limit order book for the stock of Apple Inc. No trading conditions are imposed on these limit orders.

Ask Size

Ask Price

Bid Price

Bid Size

1000

$102

$95

1000

2500

$101

$94

2000

4000

$100

$93

1000

1500

$99

$92

1500

2500

$98

$91

4000

1000

$97

$90

3000

1000

$96

$89

2000
  1. If you submit a market order to purchase 1500 shares of the stock, what will be the price(s) and quantity at which your order can be executed? Assume that your order has the highest priority in execution. (4 points)

2. Limit order book has been used in continuous auction of stock exchanges during the trading hours. Please list ONE alternative outlet where you can trade the stocks after normal trading hours. (4 points)

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Answer #1

Question : If you submit a market order to purchase 1500 shares of the stock, what will be the price(s) and quantity at which your order can be executed? Assume that your order has the highest priority in execution.

Answer : The order will be executed as follows: 1000 shares @ $96 and 500 shares @ 97

Question : Limit order book has been used in continuous auction of stock exchanges during the trading hours. Please list ONE alternative outlet where you can trade the stocks after normal trading hours.

Answer : You can trade after the normal trading hours using Overnight Trading

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