Homework answers / question archive / You have a short position of 1000 shares of stock at $80 per share

You have a short position of 1000 shares of stock at $80 per share

Finance

Share With

You have a short position of 1000 shares of stock at $80 per share. The price has decreased to $70. The forecasts from stock analysts are mixed. If you would like to cover your short position if the stock increases as much as $1 but stay put if the price continues going down. What could you do?

A. Sell limit order at $71.

B. Buy limit order at $71.

C. Sell stop order at $71.

D.Buy stop order at $71.

1.4 Suppose you have a stop-loss order to sell some shares of stock that you own. Currently, the stock price is $50, and you set the stop price to be $45. How much will you receive per share if the price decreases to $42?

A. $3.

B. $5.

C. $8.

D.Cannot tell with the given information.

2.2 Supose you want to purchase a stock at $30 per share, but this stock is currently trading at $32. What kind(s) of order would you submit?

A. Limit buy order.

B. Market order.

C. Stop-loss order.

D.Market-to-limit order.