If a customer places a buy order for one millisecond only on an electronic limit order...
If a customer places a buy order for one millisecond only on an electronic limit order book, what happens next in the case that the order is below the lowest offer? Alternatively, what happens if the order is above the highest bid?
Homework Answers
The buy order can only be executed at the limit price or below that. Hence if the order is below the lowest price, it will be executed since it lower. However if the order is above the highest bid, it will not be executed, since it is not at the limit price of lower than that.
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If a customer places a buy order for one millisecond only on an
electronic limit order...
Any help is appreciated! Problem 1 Assume that the limit order book is as shown in...
Any help is appreciated!
Problem 1 Assume that the limit order book is as shown in the table below. 1) What is the bid-ask spread in cents and basis points of the mid price? 2) If you buy 100 shares with a market order, an immediately sell them also with a market order, what is your P&L? 3) A limit order to buy 150 shares at $34.50 arrives in the market. What transactions occur, and what is the resulting bid-ask...
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Problem: A discount shoe store always runs a ‘buy one, get one free (limit one free pair per customer)’ campaign. A cu...
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Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for...
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variabe costs Direct materials $130 Direct labor 110 Manufacturing support Marketing costs 145 65 Fixed costs Manufacturing mapport Marketing costs Total costs 185 75 710 Markup (40%) Targeted selling price 284 1994 What is the full cost of the...
Any help is appreciated!
Problem 1 Assume that the limit order book is as shown in the table below. 1) What is the bid-ask spread in cents and basis points of the mid price? 2) If you buy 100 shares with a market order, an immediately sell them also with a market order, what is your P&L? 3) A limit order to buy 150 shares at $34.50 arrives in the market. What transactions occur, and what is the resulting bid-ask...
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $140. Limit Buy Orders Price Shares $139.75 700 139.70 1,000 139.65 700 139.60 200 138.65 800 Limit Sell Orders Price Shares $139.80 125 139.85 125 139.90 350 139.95 125 a. If a market buy order for 125 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price b. At...
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: $150 80 145 Direct materials Direct labor Manufacturing support Marketing coste Fructe Manufacturing support Marketing cost Total cost Map 14016) Targeted selling price What is the contribution margin per unit? 5260 480 5220 1650 135 89 650 260 391...
Structuring a Special-Order Problem Recently Wang Company was been approached by a new customer with an offer to purchase 10,000 units of its model I34 at a price of $4.55 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Normally Wang Company produces 75,000 units of I34 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit...
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Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variabe costs Direct materials $130 Direct labor 110 Manufacturing support Marketing costs 145 65 Fixed costs Manufacturing mapport Marketing costs Total costs 185 75 710 Markup (40%) Targeted selling price 284 1994 What is the full cost of the...
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