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The last executed price was $9.55. Q1. Peter did some analysis on XYZ stock and thinks that the stock price can rise to a maximum
The last executed price was $9.55. Q1. Peter did some analysis on XYZ stock and thinks that the stock price can rise to a maximum of $10.50 in the near future. However, he believes that the stock price will fall to $9.50 before it rises to $10.50. Peter would like to buy 5,000 shares of XYZ stock. Answer the following questions based on the information given. A. What type of order (market buy, market sell, limit buy, limit sell, stop buy, stop sell) and at what price level should Peter place to buy XYZ stock? Explain your answer. B. After buying the stock in part A, what type of order (market buy, market sell, limit buy, limit sell, stop buy, stop sell) and at what price level should Peter place to sell XYZ stock to maximize his profit? Explain your answer. C. Calculate the profit Peter can make from the answers of A and B above
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