Suppose the stock price is $50, but that we plan to buy 100 shares if and when
Question:
This is a noncancellable limit order.
a. What transaction could you undertake to offset the risk of this obligation?
b. You can view this limit order as a liability. What is its value?
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We are obligated to purchase the stock for 45 when if ...View the full answer
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Somshukla Chakraborty
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