On Monday morning, you place a stop order GTC to sell your 100 shares of Z stock

Question

On Monday morning, you place a stop order GTC to sell your 100 shares of Z stock on the NYSE, currently listing at $42/share, at $40. You then board a non-stop flight to Europe before the market opens. When you land at 5PM Eastern standard time, you find out that Z stock opened at $41, and fluctuated between $41 and $42 all day. The next day, you find out Z stock opened at $39, then went immediately to $38, but then rebounded to $43 by 4PM EST. What do you own at the end of day 2?

a. $3,800 in cash

b. $3,900 in cash

c. $4,300 in cash

d. 100 shares of Z stock

Explanation / Answer

GTC is good till cancelled is an order to buy or sell a security at a particular price that is active till trade is executed or investor cancles it.

Stop order means the trade will be executed once it reaches 40 $, so it will be executed at 39$

So investor will have 3900 $,option b

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