Question
Here is some price information on ABC stock: Bid Asked ABC 39.95 40.05 1. You have placed a stop-loss order to sell at $40. What
Here is some price information on ABC stock:
Bid Asked
ABC 39.95 40.05
1. You have placed a stop-loss order to sell at $40. What are you telling your broker? Given
market prices, will your order be executed?
2. Suppose that you sell short 100 shares of IBM, now selling at $70 per share. (a) What is your
maximum possible loss? (b) What happens to the maximum loss if you simultaneously place a
stop-buy order at $78?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
