Consider the Following Limit Order Book of a Specialist

question 82

Multiple Choice

Consider the following limit order book of a specialist.The last trade in the stock occurred at a price of $40.If a market buy order for 100 shares comes in,at what price will it be filled?

• A) $39.75
• B) $40.25
• C) $40.375
• D) $40.25 or less

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Definitions:

Full Warranty

A comprehensive guarantee that a product will perform as advertised and the seller will repair or replace defective items at no charge.

Limited Warranty

A warranty with certain conditions and limitations on the parts, time, type of defect, or other factors warrantied.

Warranty

An assurance, either express or implied, by one party that the other party can rely on its representations of fact; in sales, a binding promise regarding a product in the event that the product does not meet the manufacturer’s or seller’s promises.

Written Warranty

A documented guarantee provided by a manufacturer or seller, detailing the conditions under which a product can be returned, replaced, or repaired.