[RDKXT] The DMM’s book displays the following inside quote: $9... | Achievable Series 66…
wouldnt this be ‘Buy 550 shares at 90.11’ ???
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Hi @Ellis_Johnson. I am happy to answer your question. This DMM question asks which of the following would NOT be filled immediately in its entirety. Make sure to read each question carefully!
The correct answer is:
Buy 450 shares at $90.06
The explanation explains this:
The designated market maker’s (DMM’s) quote includes a bid ($90.00), which is the highest price the DMM will purchase stock, and an ask ($90.10), which is the lowest price the DMM will sell stock. Customer orders submitted to the DMM will buy at the ask and sell at the bid. The size of the market is 5 x 6, meaning there are 500 shares available at the bid and 600 shares available at the ask.
The order to buy 450 shares at $90.06 will not get filled immediately because the purchase price on the order ($90.06) is below the lowest price the DMM is willing to sell stock ($90.10).
In the future, you can use the mail icon in the upper right corner of each quiz/exam question to send us direct feedback and the specific question. That is the easiest way to communicate when you have questions on your quizzes/exams.
Please let us know if you have any other questions. Thank you,
-Brenden
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