Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cincinnati Financial Corp (CINF) common stock is currently trading at $79 per share. a. (5) Suppose an investor places a limit buy order with
Cincinnati Financial Corp (CINF) common stock is currently trading at $79 per share. a. (5) Suppose an investor places a limit buy order with a limit price of $65. Explain what this means and why an investor might place this order. b. (5) If CINF stock immediately drops from $79 to $62, what will happen based on the limit order above? c. (5) If CINF stock immediately drops from $79 to $62, what will happen if the investor had instead placed a limit sell order with a limit price of $65? d. (5) Explain why an investor would place a limit buy order with a limit price of $80 when CINF is trading at $79. e. (5) If CINF is trading at $79, explain a stop limit buy order using stop and limit prices of your choosing.
Step by Step Solution
★★★★★
3.42 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
a Placing a limit buy order with a limit price of 65 means that the investor is willing to buy shares of Cincinnati Financial Corp CINF common stock but only at a price of 65 or lower This type of ord...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