Q9. XYZs stock currently has a bid price of $39.95 and an ask price of $40.05. You have placed a stop-loss order to sell at $40. Which of the following should happen?

A. My broker will not do anything at current market price.

B. My broker will sell my shares at $39.95.

C. My broker will sell my shares, although I do not know the selling price from the information given.

D. My broker will buy my shares at $40.05.

Q10. Suppose Cathay Pacific is currently trading at $7 per share, and you want to short sell 200 shares of it. To protect yourself from potential huge loss in the future, what kind of order can you place to your broker at the moment that you short sell?

A. Limit-sell order

B. Limit-buy order

C. Stop-buy order

D. Stop-sell order

D. My broker will buy my shares at $40.05.