2. Assume you buy your 550 shares and at the same time place a stop loss...
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2. Assume you buy your 550 shares and at the same time place a stop loss order at $115.50; suppose 1 hour later the price of Apple drops to $115.50 and the order book for Apple is the one below: Ask Size Bid 115.54 200 115.53 350 115.52 100 115.51 300 115.50 100 200 115.48 100 115.47 200 115.46 300 115.45 100 115.44 (a) How much money do you receive? What is the average price at which you sold? What is the new market price? (b) Suppose instead that you placed a stop-loss limit order with limit price of $115.48. How much money do you receive? What is the average price at which you sold? What is the new market price? 2. Assume you buy your 550 shares and at the same time place a stop loss order at $115.50; suppose 1 hour later the price of Apple drops to $115.50 and the order book for Apple is the one below: Ask Size Bid 115.54 200 115.53 350 115.52 100 115.51 300 115.50 100 200 115.48 100 115.47 200 115.46 300 115.45 100 115.44 (a) How much money do you receive? What is the average price at which you sold? What is the new market price? (b) Suppose instead that you placed a stop-loss limit order with limit price of $115.48. How much money do you receive? What is the average price at which you sold? What is the new market price?
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a With a stoploss order at 11550 as soon as the market price reaches or goes below this level the or... View the full answer
Related Book For
Business Statistics For Contemporary Decision Making
ISBN: 978-1118749647
8th edition
Authors: Black Ken
Posted Date:
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