Question 2

The current price of Migros stock is $105. Sue places a limit order for 1 lot of shares at $95. The price falls so $95.05 and the rises over the course of a month to $112.

Question 2 options:

1. Sue does not own the stock, but will if his trade can ever be executed at $95.00 or better.

2. Sue has a gain of $1,695.

3. Sue has a loss of $1,695.

4. Sue has a gain of $1,700.