Here is some price information on Fincorp stock. Suppose first that Fincorp trades in a dealer market.

Bid Asked
55.25 55.50

a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed?
b. Suppose you have submitted an order to sell at market. At what price will your trade be executed?
c. Suppose you have submitted a limit order to sell at $55.62. What will happen?
d. Suppose you have submitted a limit order to buy at $55.37. What will happen?

Respuesta :

Answer:

The following are the solution to this question:

Explanation:

In option a, The trading shall take place at $55.50 because it's the best possible market value.  

In option b, The trading being taken out at $55,25 since it is the best price available on the market.  

In option c, The deal doesn't occur as $55.62 (minimum bid price) is moreover $55.25.  

In option d,  The transaction would not be taken out and it is under $55.37  (ask price).