Question

You find the following order book on a particular stock. The last trade on the stock was at $71.54.

Buy order (bid)

Shares	price
50	71.53
100	71.03
100	70.51
500	70.49

Sell order (ask)

Shares	Price
125	71.56
200	71.62
100	71.65
700	71.78
900	71.95

a. It you place a market buy order for 200 shares, at what price(s) will it be filled?

b. If you place a market sell order for 200 shares, at what price(s) will it be filled?

c. If you place a market buy order for 500 shares. At what price(s) will it be filled?

Answer 1

a. If you place a market buy order for 200 shares, what price(s) will it be filled?

if the buy order was placed, it will be filled at ask prices. as we are buying 200 shares, The first 125 shares are filled at $71.56 per share, and the next 75 shares are filled at $71.62 per share

b. If you place a market sell order for 200 shares, what price(s) will it be filled?

if the sell order was placed, it will be filled at bid prices. as we are selling 200 shares, The first 50 shares are filled at $71.53 per share, and the next 100 shares are filled at $71.03 per share, and the next 50 shares are filled at $70.51 per share

c. If you place a market buy order for 500 shares. At what price(s) will it be filled?

if the buy order was placed, it will be filled at ask prices. as we are buying 500 shares, The first 125 shares are filled at $71.56 per share, and the next 200 shares are filled at $71.62 per share, and the next 100 shares are filled at $71.65 per share, and the next 75 shares are filled at $71.78 per share