4. Fred is a disciplined day trader who believes in the old adage, Don't fight the market. He feels that when he puts on a trade, if the market does not act as he predicts, then he has made a mistake. He should quickly exit his position to cut his losses. When he purchases a stock, he also puts in a stop loss order as part of his discipline. He has just purchased XYZ at $50, expecting it to rise. At the same time, he puts in a stop loss order at $49. a. Under what conditions will the stop loss order be triggered? b. What are the risks associated with Fred's trading strategy? C. A "news pending" trading halt occurs in XYZ when the last trade was at $50.03. The company announces a major recall of its main product. When the stock resumes trading, the first trade occurs at $40. What happens to Fred's stop order?