Problem 1) Order Types Suppose Dell is currently trading at $65. You think if it reaches $70 ,it will continue to climb, so you want to buy it if and when it gets there. Should you submit a limit order to buy at $70?
Problem 2) Order books You find the following order book on a particular stock. The last trade on the stock was at $81.03.
Buy Orders Sell Orders
Shares Price Shares Price
350 $ 81.01 100 $ 81.04
100 $ 81.00 600 $ 81.05
900 $ 80.98 1000 $ 81.07
75 $ 80.96 700 $ 81.08
900 $ 81.10
A) If you place a market buy order for 100 shares, at what price will it be filled?
B) If you place a market sell order for 100 shares, at what price will it be filled?
C) Suppose you place a market order to buy 400 shares. At what price will it be filled?