Solution:
Part A ) Entering market order to buy 3,000 shares: When one enters the market order then the order will be executed starting from the lowest offered price.
In the given question lowest offer price is 51 and next price is 52 and so on.
Price: 51 Quantity: 500
Price: 52 Quantity: 1000
Price: 53 Quantity: 1000
Price: 54 Quantity: 500
Average Price =( 51 * 500 + 52 *1000 + 53*1000 + 54*500 ) / 3000 = 157500 /3000 = 52.5
Part B) Selling 500 shares at market order: When market order to sell is placed then the highest bid price order will be fetched first.
Here highest bid price is 49 and quantity is 100.
Next highest bid is 48 and quantity is 500. But in order to fulfill the market order only 400 quantity is needed
Executed order will be
Price : 49 Quantity: 100
Price: 48 Quantity: 400
Average price = (49*100 + 48*400)/500 = 24100/500 = 48.2
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please can you solve for all
these questions but the right answers because I dont have anymore
remaining please
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