When the last sale price of N&N is $10, I enter a stop loss order to sell at $8 trailing by $2. In which of the following situations does my order get triggered? State what the corresponding series of stop prices are (assuming discrete price movement) and finally whether it is triggered or not and the triggered price. $10 is followed by trades at $9, $11 and $12.

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 24DQ
icon
Related questions
Question
Question 7
When the last sale price of N&N is $10, I enter a stop loss order to sell at $8 trailing by $2. In
which of the following situations does my order get triggered? State what the corresponding
series of stop prices are (assuming discrete price movement) and finally whether it is triggered
or not and the triggered price.
a.
b.
C.
$10 is followed by trades at $9, $11 and $12.
$10 is followed by trades at $11, $13 and $11.
$10 is followed by trades at $12, $15, $14 and $13.
Transcribed Image Text:Question 7 When the last sale price of N&N is $10, I enter a stop loss order to sell at $8 trailing by $2. In which of the following situations does my order get triggered? State what the corresponding series of stop prices are (assuming discrete price movement) and finally whether it is triggered or not and the triggered price. a. b. C. $10 is followed by trades at $9, $11 and $12. $10 is followed by trades at $11, $13 and $11. $10 is followed by trades at $12, $15, $14 and $13.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT