Question
In: Finance
Limit order book is formed by limit orders, because limit ordersareLiquidity providerLiquidity demander...
Limit order book is formed by limit orders, because limit orders are
Liquidity provider | ||
Liquidity demander | ||
Both liquidity provider and demander | ||
None of the above are correct |
If the cost of carry is less than the convenience yield, the seller of the future contract should deliver as early as possible
true or false
Making profit by taking no risk is a risk-free arbitrage opportunity.
true or false
Solutions
Expert Solution
1. B) BOTH LIQUIDITY PROVIDER AND DEMANDER
2. FALSE
If the cost of carry is less than the convenience yield, the seller of the future contract should deliver as LATE as possible
3.FALSE
The truth however is that arbitrage funds are not risk-free. Where does the risk lie? Well, factors like the availability of arbitrage opportunities, their 'perfect' execution and also the liquidity in the stock/cash and futures segments are some of the factors that contribute to the uncertainty, and therefore risk, with respect to this investment avenue.
jeff jeffy answered 2 years agoRelated Solutions
Refer to the below limit order book for the stock QQL.
Refer to the below limit order book for the stock QQL.1006.406.80300TimeTraderSizePricePriceSizeTraderTime09:55HSU1006.406.80300CTI09:1510:11HKB3006.206.951000WHB09:3009:45BEA5506.007.05100CCB10:00The following scenarios are independent of each other.a. If you execute a market buy order of 500 shares of
QQL, how much money would you receive?b. If a limit order to sell 700 shares at $6.40
arrives, what would be the new market best bid and ask?c. Suppose at 10:15, one of your clients requests to
buy 300 shares of QQL “by the end of the trading day”. There are...
Consider the following limit order book for a share of stock. The last trade in the...
Consider the following limit order book for a share of stock.
The last trade in the stock occurred at a price of $145.
Limit Buy Orders
Limit Sell Orders
Price Shares
Price Shares
$144.75 800
$145.25 120
144.50 1100
146.50 120
144.25 800
149.75 200
144.00 200
153.25 120
143.50 900
If a market buy order for 120 shares comes in, at what price
will it be filled? (Round your answer to 2 decimal
places.)
Best price :
Consider the following limit order book for a share of stock. The last trade in the...
Consider the following limit order book for a share of stock.
The last trade in the stock occurred at a price of $135.
Limit Buy Orders
Limit Sell Orders
Price
Shares
Price
Shares
$134.75
600
$134.80
200
134.70
900
134.85
200
134.65
600
134.90
400
134.60
200
134.95
200
133.65
700
a. If a market buy order for 200 shares comes in,
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b. At what price...
Limit order book Below you can find order information received by the Exchange for stock ABC...
Limit order book
Below you can find order information
received by the Exchange for stock ABC from 9am to 10am. Please
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rows if needed. For the orders which can be executed or partially
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bid and...
Explain market orders, limit orders, and stop orders. How are they different from one another?
Explain market orders, limit orders, and stop orders. How are
they different from one another?
Below is the current limit order book for Intel stock. Answer the following questions. Treat each...
Below is the current limit order book for Intel stock. Answer
the following questions. Treat each question independently.
Bid
Ask
Price
Size
Price
Size
23.16
17200
23.17
10900
23.15
27800
23.18
31643
23.14
26000
23.19
29445
23.13
31100
23.2
27946
23.12
18900
23.21
14628
23.11
17925
23.22
19725
23.1
12250
23.23
14290
23.09
7800
23.24
11100
23.08
4900
23.25
40694
A. If you place a market order to buy 100 shares of Intel, at
what price and quantity will your...
Consider the following limit order book for a share of stock. Bid Ask Price Shares Price...
Consider the following limit order book for a share of
stock.
Bid
Ask
Price
Shares
Price
Shares
$79.75
500
$79.80
500
79.70
900
79.85
400
79.65
700
79.90
900
79.60
1000
79.95
700
78.65
600
a. If a market sell order for 1200 shares comes
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b. Immediately after the order in a) is executed,
what is the bid-ask spread of the stock? (Keep two decimal
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Essay question 22. The present limit order book for stock A looks like the following: Price...
Essay question
22. The present limit order book for stock A looks like the
following:
Price ($)
Quantity (# of shares)
ask5
10.50
50,000
ask4
10.40
45,000
ask3
10.30
5,000
ask2
10.25
20,000
ask1
10.20
10,000
bid1
10.10
5,000
bid2
10.05
10,000
bid3
10.00
4,000
bid4
9.90
10,000
bid5
9.85
20,000
If there is an
Arrival of a market sell Q=18,000
Arrival of a sell @$10.00， Q=18,000
Discuss
(a) how many trades occur?
(b) what is limit order book change?...
Below are five topics for you to describe: Limit order book Continuous and call auctions Flash...
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Explicate 2 different types of orders such as limit and stop limit ones Explain the underwriting...
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Explain the underwriting function of an investment
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Explain the difference between governmental in contrast
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Explain Private placements.
Expound on three different approaches of distributing
shares initially to the public markets.
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