Suppose we have 100 shares of Facebook. We want to use a trailing stop % order to provide some protection. Which of the following best descries how the trailing stop order would work? O A. We would designate the price at which to sell the stock. Once the stock moved to that price the order would be executed. The stock could move up and down and as long as it did not hit the price we designate, it does not execute. OB. We would designate a percent from the current price. If the stock moved down to that price the order would execute. If the stock price increases, the sell price increases as well. C. We would designate a percent from the current price. If the stock moved down to that price the order would execute. If the stock price increases, the sell price remains the original price providing maximum protection. OD. We would designate a percent from the current price. If the stock moved down to that price the order would execute. If the stock price increases, the sell price decreases to provide additional protection. QUESTION 31 Derivatives are investments that are derived from an underlying asset. True False QUESTION 32 Which of the following is NOT a potential time frame that we can use on limit orders and stop orders? O A. Good for the day O B. Good til cancelled OC. Execute immediately O D. Good til specified date QUESTION 33 take out virtually all risk from this investment? Suppose you invest your retirement in a corporate bond. You have found a 30 year bond that pays 4% a year. You are extremely risk averse and are content to get a low fixed rate if you can remove all risk. What investment can you use O A. Short the shares of the company's stock, that way if the company does poorly you will make a profit on the stock. O B. Purchase a credit default swap OC. Use an interest rate swap O D. Hedge your investment using fx. Go long the U.S. dollar and short a foreign currency like the Euro or the Yen