One hour ago, Mr. Jones placed a stop sell order to sell 50,000 shares of XYZ stock at the price of $12.20 when the last executed price was $12.50.

Now, the last executed price falls to $12.20. The bid and offer orders of XYZ stock are shown in the table below.

Bid (shares)		Offer(shares)
	$12.5	8,000
	$12.4	23,000
	$12.3	17,000
20,000	$12.2
18,000	$12.1
45,000	$12.0

Based on the table above, at what price(s) and how many shares will be sold in Mr. Jones order? Explain your answer. (7 marks)

What is the possible reason that Mr. Jones did not sell the stock at around $12.50 but instead placed the stop sell order to sell at a lower price of $12.20? (5 marks)

An index is composed of 5 stocks (A, B, C, D and E). The stock prices of the 5 stocks on day 1 and day 2 are shown below. Suppose the index level on day 1 is 12,356. Calculate the index level on day 2 using price weighted method. (4 marks)

Stock	Price per share $	Number of free-float shares (million)
	Day1 Day2
A	$36.36 $35.97	163
B	$48.36 $47.71	88
C	$48.44 $47.98	42
D	$34.35 $33.42	43
E	$74.32 $72.53	68

David is not holding any investment at this moment. The stock price of XYZ stock is currently $28 per share. He is very confident that the stock price of XYZ stock will fall very soon. How can David make some profit in this situation? Explain your answer. (5 marks)

Further to the previous question, what does David have to do before he places his order? (3 marks)

Suppose after executing Davids strategy at $28 per share in part D the stock price rises to $32 per share. Calculate the profit/loss per share in dollar amount. (3 marks)