Question: which one is the correct answer You borrowed and sold IBM stock at $100 per share. It is now $88 a share. You think it
which one is the correct answer
You borrowed and sold IBM stock at $100 per share. It is now $88 a share. You think it could drop further but you are nervous that it could go up. To protect your short position and limit the loss that can be incurred (i.e. close out position if unfavourable price movements take place), you could place a O A. buy stop order at $90 a share. B. buy stop order at $86 a share. O C. sell stop order at $86 a share. OD. sell stop order at $90 a share
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
