Question
Current market price for one share of a companys stock is $52. An investor has just sent the following orders to her broker: buy 100
Current market price for one share of a companys stock is $52. An investor has just sent the following orders to her broker: buy 100 shares at the market price, stop-loss for 100 shares at $50 a share, and limit-sell for 100 shares at $54 a share. Ignoring transaction costs, compute the investors loss or profit if share price 1) monotonically goes down to $49, then monotonically rises to $53; 2) monotonically goes down to $51, then monotonically rises to $55
The correct answer is 1) Loss of $200, 2) Profit of $200. I just dont know how to get their using a financial calculator. Can you please show me using a financial calculator. Thank you :)
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