Problem 3-9 Market and Limit Orders
One order is a market order for the purchase of 200 shares. A second order is a fill or kill limit order set at $52.10 for the purchase of 200 shares. When the two orders arrive at the stock exchange, the bid quote is $52.07 and the ask quote is $52.13. This information is displayed in the following table:
Buy (Shares)
Market Order 200
Limit Order 200 Limit Price $52.10
Bid Ask
$52.07 $52.13
(a)
What is the value of the market order trade?
The value of the market order trade is $ .
(b)
What is the value of the limit order trade?
The value of the limit order trade is $ . Enter a 0 if the trade has no value (when the trade is not filled).