Question

In: Finance

The Frankfurt Stock Exchange has accumulated the following overnight orders: Trader Order Quantity Price Bob Buy...

The Frankfurt Stock Exchange has accumulated the following overnight orders:

Trader

Order

Quantity

Price

Bob

Buy

150

30

James

Buy

200

27

Amy

Buy

250

25

Julia

Buy

180

22

Sam

Buy

150

18

Sandy

Sell

190

17

Katrina

Sell

200

21

Jerry

Sell

220

25

Jack

Sell

150

27

The clearing price is set to maximize matched volume.  The secondary criterion is to minimize net imbalance.  What is the clearing price?  What is the matched volume and net imbalance at that price?

Solutions

Expert Solution

We first tabulate the given data and calculate as per the image -

So we apply both the criterias as asked to arrive at our results.

Thanks :)

jeff jeffy answered 2 years ago
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