Answered step by step
Verified Expert Solution
Question
1 Approved Answer
14. Your trading exit strategy for a stock that you own is to capture a gain if the price climbs 10%, and close out a
14. Your trading exit strategy for a stock that you own is to capture a gain if the price climbs 10%, and close out a losing position if it drops by 7.5% What type of order will you use to protect yourself from more than a 7.5% loss if you are not watching the market at the time the stock reaches a 7.5% loss? B. Buy Limit order C. Sell Stop order D. Buy Stop order A. Sell Limit order 15. You have been watching Amazon stock (AMZN) stock recently and see that it continues to climb at a faster pace than the average market. After using a few pricing models you feel that the price of $1,800 per shure is too much, it is overpriced at this level. If the price per share drops to $1,500 you want to invest in the stock, which order type would you use to trade AMZN once it hits $1,500 even if you are not watching the market at the time? A. Sell Limit order B. Buy Limit order C. Sell Stop order D. Buy Stop order a 16. Go Green Go White Inc. is preparing a new bond offering with a 7 percent, semiannual coupon and a par value of $1,000. The bonds will be repaid in 10 years and will initially be sold at par. Given this, which one of the following statements is correct? A. The final payment will be in the amount of $1,070 B. The bonds will pay 10 interest payments of $35 cach C. The bonds will sell at a discount if the market rate becomes 5.5 percent D. The bonds will initially sell for $1,035 cach E. The bonds will become premium bonds if the market rate of interest declines
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started