a) When will a short-selling investor receive a margin call? Briefly explain the action an investor has to take upon receiving the margin call.

b) ABC placed a stock order with his broker. After that, a trade in the stock occurred at a price of $20.1. Consider the following bid/ask market order book after the last trade.

Bid

Price Share

19.90 1000

19.80 1000

19.70 2000

Ask

Price Share

20.10 500

20.30 1000

20.40 500

i. ABC's order was "a sell-limit order at 20.3 for 500 shares". What happens to ABC's order now?

ii. ABC's order was "a buy-stop-limit order at 20.1 for 1000 shares". What happens to ABC's order?

a) When will a short-selling investor receive a margin call? Briefly explain the action an investor has to take upon receiving the margin call. b) Ray placed a stock order with his broker. After that, a trade in the stock occurred at a price of \$20.1. Consider the following bid/ask market order book after the last trade. i. Ray's order was "a sell-limit order at 20.3 for 500 shares". What happens to Ray's order now? ii. Ray's order was "a buy-stop-limit order at 20.1 for 1000 shares". What happens to Ray's order