Question

In: Finance

Please explain how to do this problem and solve. Bid Ask Price Size Price Size $...

Please explain how to do this problem and solve.

Bid Ask

Price Size Price Size
$ 94 150 $ 94.5 300
$ 93.5 300 $ 94.8 300
$ 92 600 $ 95 500
$ 90.8 450 $ 95.5 550

b. Norman Pilbarra submits a market order to buy 600 shares. What is the maximum price that he will pay? (Round your answer to 2 decimal places.)

Solutions

Expert Solution

Generally, a stock on exchange quoted in following manner :-

Bid Price is a maximum price that a investor willing to pay to buy a share.

Ask Price is a minimum price that a investor willing to accept to sell a share.

  Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago
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