FIN 462 Section 70 Fall 2018 Haley Blake& r27/18 8:19 PM Quiz: Chapter 3 Quiz Su

Question

FIN 462 Section 70 Fall 2018 Haley Blake& r27/18 8:19 PM Quiz: Chapter 3 Quiz Submit Quiz This Question: 1 pt This Quiz: 5 pts possible oh You own 500 shares of Ups&Downs, Inc, stock t is ourently priced at $56. You are going on vacation, and you realize that the company will be reporting eamings while you are away To protect yourseif against a rapid drop in the price, you place a siop-limit order to sell 500 shares at $46, ums out the eamings report was not so good, and the stock price Sell to $38 right after the announcement. dd, howver, bounce back, and by the end of the day i was back to $48. What happened in your account? What happened in your account? (Select the best answer below) O A. iR is ikely you sold 500 shares a 546 or less per share O B. IH is ikely you sold 500 shares between $46 and $48 per share O C. Itis lkely you sold 500 shares at 536 or more per share O D. It is ikely you did not sell the 500 shares

Explanation / Answer

Stop limit order shall start selling shares as soon as the price reaches $46 or less. hence the shares shall be sold at $46 or less price.
Therefore option A is correct

B is incorrect as shares wont be sold above $46
C is apt but it is most likely that shares have been sold below 46
D can also happen but is unlikely as number of shares in only 500

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