Consider the Following Limit Order Book of a Specialist

question 29

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:

Horizontal Design

An organizational structure that focuses on teamwork and collaboration, minimizing hierarchical levels.

Functional

Serving a specific purpose or role that contributes to the overall operation or efficiency of a system.

Geographical

Pertaining to the nature and relative arrangement of places and physical features on Earth.

Centralization

the concentration of decision-making authority and power at the top levels of an organization's hierarchy.