Here is some price information on Marabel, Inc.
Bid Asked
Marabel $67.95 $68.05
You have placed a limit order to sell at $68. What are you telling your broker? Given market prices, will your order be executed?
We are trying to teel the broker to sell the order when the selling price is $68 . Order will not be executed currently since the Bid price is $67.95 which is less than the limit order set by us.
Ch 3, Question 13 Here is some price information on Marriott Marriot 39.95 40.05 Bid Ask You have placed a stop-loss order to sell at $40. What are you telling your broker? Given market prices, will your order be executed? Question 15 You have borrowed $20,000 on margin to buy shares in Disney, which in now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the...
Suppose the bid price for GE stock is $12.00 and the asked price is $12.25. (a) Suppose you have submitted an order to sell at market. At what price will your trade be executed? (b) Suppose you have submitted a limit order to sell at $12.20. Does your order get executed? If so, at what price? (c) Suppose you have submitted a stop-sell order to sell at $12.20. Does your order get executed? If so, at what price?
Problem 3-14 Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market Вid 41.25 Ask 41.80 Book a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) Print Werences Price b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal...
Suppose you bought 100 shares of IBM at $200 per share. What is the maximum loss if you place a stop-loss order at $180? Your Answer: Answer Question 10 (1 point) Here is some price information in Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid 55.25 Asked 55.50 Suppose you have submitted an order to your broker to buy at market. What will happen? The trade will be executed at $55.50 The trade will not be executed...
For Stock A, which is traded in a dealer market, the bid-ask spread is 1 dollar. A buy-market order is executed at 60 dollars. A. Will a limit-sell order of 60.5 be executed? If so, in what price? B. Will a limit-buy order of 59.5 be execeuted? If so, in what price? C. Will a market-sell order be executed? If so, in what price?
4.LVMH is a French firm listed on the Paris Bourse, You can access the central limit order book directlv on the internet and find the following information (the limit Prices for sell orders are ask prices and those for buy orders are bid prices: Sell Orders Buy Orders Quantity LimiQuantity Limit 1,000 58 3,000 54 1,000 53 1,000 52 2,000 46 500 51 10049 500 48 1,000 47 10,000 44 You wish to buy 3,000 shares and enter a market...
You submitted an order to buy the Southern Province Cement Co. security. The bid and ask prices at the time of the order submission were $50 and $51. What should be the actual transaction price or result if (a) your order was a market order to buy (b) your order was a limit order to sell at $51? (c) Would you expect the bid-ask spread to be higher on actively or inactively traded stocks?
Suppose that the best limit orders on the limit order book are as follows: Bid Ask Price Size 53.4 400 53.2 200 52.8 300 52.5 1000 Price Size 54.5 100 54.6 300 55.3 500 55.4 200 After a sell order of 800 with a limit price of 53:00 reaches the market and is executed, what are the new best bid and...
P2-2 (similar to) Question Help Transaction costs In late December you decide, for tax purposes, to sell a losing position that you hold in Twitter, which is listed on the NYSE, so that you can capture the loss and use it to offset some capital gains, thus reducing your taxes for the current year. However, since you still believe that Twitter is a good long-term investment, you wish to buy back your position in February the following year. To get...
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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...