Question: B1 is answered, need help with B2!! B2.Base on your decision and the conditions in B1, you start to submit your market order. You find

 B1 is answered, need help with B2!! B2.Base on your decision

and the conditions in B1, you start to submit your market order.

B1 is answered, need help with B2!!

B2.Base on your decision and the conditions in B1, you start to submit your market order. You find the current order book structure is the follows: On July 13th,2023, you closed your position by submitting a limit order of $195 per share. The order was successfully executed. What is your profit or loss (not return) of the trading strategy after you closed your position according to the trading direction when you are (i) extremely pessimistic; (ii) extremely optimistic. B1. Suppose you have enough funds (which allows you to buy/long the stock totally by using your own funds or sell/short the stock by borrowing the stock from the broker) and decide to trade 1,500 shares of APPL stocks. If you want to maximize your possible return after one month based on current information, what direction of trading will you choose if you are (i) extremely pessimistic; (ii) extremely optimistic and explain why simply. (Hint: you can use your results from A) i. Extremely pessimistic: You should long/buy the stock APPL because if the stock performs better than your prediction, you can gain from the upward movement. ii. Extremely optimistic: You should short/sell the stock APPL because if the stock performs worse than your prediction, you can gain from the downward movement. B2.Base on your decision and the conditions in B1, you start to submit your market order. You find the current order book structure is the follows: On July 13th,2023, you closed your position by submitting a limit order of $195 per share. The order was successfully executed. What is your profit or loss (not return) of the trading strategy after you closed your position according to the trading direction when you are (i) extremely pessimistic; (ii) extremely optimistic. B1. Suppose you have enough funds (which allows you to buy/long the stock totally by using your own funds or sell/short the stock by borrowing the stock from the broker) and decide to trade 1,500 shares of APPL stocks. If you want to maximize your possible return after one month based on current information, what direction of trading will you choose if you are (i) extremely pessimistic; (ii) extremely optimistic and explain why simply. (Hint: you can use your results from A) i. Extremely pessimistic: You should long/buy the stock APPL because if the stock performs better than your prediction, you can gain from the upward movement. ii. Extremely optimistic: You should short/sell the stock APPL because if the stock performs worse than your prediction, you can gain from the downward movement

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