A stock is currently trading 50$. You want to buy it cheaper, placing a limit buy 47. Also, expecting that by year end the stock will rise to 70$ and then decline, you place a limit sell 70$.You were right about the direction of the stock price, it went directly to 75$. What is your current position?

A stock is currently trading 50$. You want to buy it cheaper, placing a limit buy 47. Also, expecting that by year end the stock will rise to 70$ and then decline, you place a limit sell 70$.You were right about the direction of the stock price, it went directly to 75$. What is your current position?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 5P: A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company’s...

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