7. After performing research, you decide that a stock currently trading at $30 would be a great value if its price dropped to $25. You should submit a order to enter a long position in the event the price actually drops to $25. a. limit buy b. limit sell c. limit short sell order d. stop-loss e. none of the above 8. You purchased 100 shares of Google at $500 a share about a month ago. Today, the shares are trading at $530 cach. You believe that Google has the ability to increase in price, but your research also suggests that the stock price may decline back down to $500. You want to make sure you walk away from this investment with at least a $28 profit per share. One strategy, which we discussed in class, would be to submit a order at $528 to exit your long position in the event that Google's stock declines rapidly back down to $500. a. limit buy b. limit sell c. limit short sell order d. stop e. stop-loss e stop-loss 9. You are thinking about shorting some Pfizer stock because you believe that their pending FDA approval for love potion will be shot down due to rumored serious side effects. If your suspicions are correct, Pfizer stock will take a precipitous drop as soon as the FDA publicly denies their approval tomorrow. Pfizer is currently selling at $16.70. You should submit a order today at $16 with the belief that if the Pfizer stock declines to this point then the news was surely bad (love potion denied) and the stock price will likely decline to about $12 a share. a. limit buy b. limit sell c. limit short sell order d. stop e. stop-loss 10. About a month ago, you shorted 100 shares of RIM at $72 a share. Your investment is looking good as RIM is now trading at $65 a share. Your research suggests that RIM has the potential to continue to decline, however there is a good chance that the shares may climb back up to $72 if a proposed merger goes through. You would like to walk away from this investment with at least a $6 profit per share, therefore you should submit a order at $66 to close out your short position in the event that the share price of RIM makes a rapid ascent based on the merger decision tomorrow. a. limit buy b. limit sell c. limit short sell order d. stop e. stop-loss