Question
you place a limit order to purchase 100 shares of a stock at a price of $38/share, though the stock is currently selling for $41/share.
you place a limit order to purchase 100 shares of a stock at a price of $38/share, though the stock is currently selling for $41/share.
If the minimum price of the stock prior to cancellation of the limit order was $38.50 and after the order was cancelled the stock price subsequently rose to $47.50/share, please indicate what consequences this would have for your account from the options below:
A: You would lose out on a potential profit since the order would not execute
B: You would earn a profit of $6/share since you would have purchased the stock at $41/share with this order
C: You would earn a profit of $9/share since the order would execute at $38.50
D: You would earn a profit of $9.50/share since the order would have executed at $38/share
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