1. Assume the following is the current order book on the pricing of Fincorp. stock:
Bid Orders Ask Orders
Price Order Size Price Order Size
72.50 400 72.55 300
72.45 900 72.60 800
72.40 2000 72.70 2000
(a) If you wanted to buy 1200 shares, how much would this cost if you submit a market order and pay a commission of $10 for the trade? Show your calculation (Note: you only have to pay one commission even if your trade is split into more than one transaction)
(b) If you want to sell 500 shares at a price of 72.52, what type of order would you use and how would your trade be reflected in the order book above? Explain.