Homework Answers
1. (C)STOP BUY ORDER - Since you have sold the stock at the beginning and you want to minimise your potential loss. It can only be minimised by placing an opposite order as a stop loss.So, A sell order is to be squared off by placing a buy order with a stop loss to minimise losses.
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1. You sold JCP stock short at $80 per share. The stock price can...
If you sold short 300 shares of Disney stock at $80 per share, you might want to limit your potential losses to about $5...
If you sold short 300 shares of Disney stock at $80 per share, you might want to limit your potential losses to about $5 per share. Assuming your order can be filled at the price you specify, which of the following orders would help you? a) limit buy b) limit sell c) stop buy d) stop sell e) all of the above
help _may limit 10. Consider the following short sale example: an investor borrows 100 shares of...
help
_may limit 10. Consider the following short sale example: an investor borrows 100 shares of a stock from the broker, put down 50% as the initial margin, and sells the stock at $100/share in the market. Suppose the stock price later goes up from $100/share to $150/share, put a the potential loss for the investor. A. limit sell order at $120/share B. limit buy order at $120/share C. stop buy order at $120/share D. stop loss order at $120/share
Options: 1. market; stop-loss; limit 2. sell; buy You sell 200 shares of a stock short...
Options:
1. market; stop-loss; limit
2. sell; buy
You sell 200 shares of a stock short for $46 per share. You want to limit your loss on this transaction to no more than $1,300. What order should you place? You should place order to 200 shares at s(Choose the correct answer from each drop-down menu and round to the nearest dollar.)
Celina short sells 1,090 shares of JBM Inc. for $41.50 per share suddenly the price of...
Celina short sells 1,090 shares of JBM Inc. for $41.50 per share suddenly the price of stock decrease to $37.35. She waited for some more time for more fall in the price of the stock. In the next trading the price of a stock rises to $45.65 per share, so, she placed a stop-buy order. A. The total loss in this transaction is $9,047.00. B. The total loss in this transaction is $2,2152.65. C. The total loss in this transaction...
Suppose you short-sell 100 shares of IBM, now selling at $120 per share. a. What is...
Suppose you short-sell 100 shares of IBM, now selling at $120 per share. a. What is your maximum possible loss per share? b. What happens to the maximum loss if you simultaneously place a stop-buy order at $128?
You sell short 200 shares of Doggie Treats Inc. which are currently selling at $52 per...
You sell short 200 shares of Doggie Treats Inc. which are currently selling at $52 per share. You post the 50% margin required on the short sale. If your broker requires a 28% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account and the firm does not pay any dividends) You short-sell 217 shares of Alibaba, at $108 per share. If you wish to limit your...
You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $51 per share....
You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $51 per share. If you want to limit your loss to $1,950, you should place a stop-buy order at ___.
You are bullish on Telecom stock. The current market price is $50 per share, and you...
You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. Round your answer to two decimal places and enter the number without the...
You just sold 1,200 shares of stock short at a price per share of $13.50. The...
You just sold 1,200 shares of stock short at a price per share of $13.50. The initial margin requirement is 60 percent and the maintenance margin is 30 percent. What is your initial equity position? $6,480 $7,520 $9,720 $10,520 $16,200
If you are short a stock, which of the following 2 orders are appropriate to limit...
If you are short a stock, which of the following 2 orders are appropriate to limit your risk? Buy a Call Option or Put in a Buy Stop above the market Sell a Call Option or Put in a Sell Stop below the market Buy a Put Option or Put in a Buy Stop below the market Buy a Call Option or Put in a Buy Stop below the market Buy a Put Option or Put in a Buy Stop...
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_may limit 10. Consider the following short sale example: an investor borrows 100 shares of a stock from the broker, put down 50% as the initial margin, and sells the stock at $100/share in the market. Suppose the stock price later goes up from $100/share to $150/share, put a the potential loss for the investor. A. limit sell order at $120/share B. limit buy order at $120/share C. stop buy order at $120/share D. stop loss order at $120/share
Options:
1. market; stop-loss; limit
2. sell; buy
You sell 200 shares of a stock short for $46 per share. You want to limit your loss on this transaction to no more than $1,300. What order should you place? You should place order to 200 shares at s(Choose the correct answer from each drop-down menu and round to the nearest dollar.)
Celina short sells 1,090 shares of JBM Inc. for $41.50 per share suddenly the price of stock decrease to $37.35. She waited for some more time for more fall in the price of the stock. In the next trading the price of a stock rises to $45.65 per share, so, she placed a stop-buy order. A. The total loss in this transaction is $9,047.00. B. The total loss in this transaction is $2,2152.65. C. The total loss in this transaction...
You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. Round your answer to two decimal places and enter the number without the...
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