Question
You have been researching a stock that you like, which is currently trading at $39.00 per share. You would like to buy the stock if
You have been researching a stock that you like, which is currently trading at $39.00 per share. You would like to buy the stock if it were a little less expensivesay, $36.00 per share. You believe that the stock price will go to $59.00 by year-end and then level off or decline. You decide to place a limit order to buy 100 shares of the stock at $36.00, and a limit order to sell it at $59.00. It turns out that you were right about the direction of the stock price, and it goes straight to $64.00. What is your current position? Assume you have a margin account with unlimited equity.
You have been researching a stock that you like, which is currently trading at $39.00 per share. You would like to buy the stock if it were a little less expensive-say, $36.00 per share. You believe that the stock price will go to $59.00 by year-end and then level off or decline. You decide to place a limit order to buy 100 shares of the stock at $36.00, and a limit order to sell it at $59.00. It turns out that you were right about the direction of the stock price, and it goes straight to $64.00. What is your current position? Assume you have a margin account with unlimited equity. You will have an of $ (Select from the drop-down menu. Round to the nearest whole dollar.)Step by Step Solution
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