You want to sell a Google share. You believe that Google’s share price is currently too low.

You want to sell a Google share. You believe that Google’s share price is currently too low. You would sell the Google share if its price is at least 2% above the current level. What type of order should you place?

		a limit buy order
		a market sell order
		a limit sell order
		a market buy order

Expert Solution

If you place a market order, the stock will be sold at the current market price itself. As you wish to sell the shares, we will place a sell and not a buy order. A limit sell order will sell the stock for a specified price or higher. Hence, our condition is satisfied. Therefore,

The order you should place is-

A limit sell order

jeff jeffy answered 2 years ago

2.) You believe that a stock currently selling for$50 a share should sell for $60.00 a...

2.) You believe that a stock currently selling for$50 a share should sell for $60.00 a share. An at-the-money call option (the exercise price equals the market price) sells for $3 per share and an at the money Put option sells for $2.50 per share. In which option should you invest. Now say that he actual price ended up being $54.00. Was there a better choice? Did you make the right choice? 3.) What is the money market all about?...

Delta Inc. stock currently trades for $30, but you believe the share price will increase over...

Delta Inc. stock currently trades for $30, but you believe the share price will increase over the next six months. Six-month European call options on the stock have an exercise price of $35 and a premium of $.90. The annual risk free rate is 3%. You want to create a portfolio that mimics the payoff of writing a 6-month European put on the stock with an exercise price of $35. Which of the following steps must you do in order to achieve...

Procter & Gamble Share price = $15. You want to sell short short 1,000 shares. The...

Procter & Gamble Share price = $15. You want to sell short short 1,000 shares. The initial margin required = 50%. The MMR = is 30%. At what stock price will you get a margin call?

QUESTION 18 To say that a price is "too low for equilibrium" means that: A. producers...

QUESTION 18 To say that a price is "too low for equilibrium" means that: A. producers are making substantial profits B. consumers want to pay a lower price than sellers are currently charging. C. there will occur a surplus of the product. D. the amount demanded exceeds the amount supplied. QUESTION 19 A point on a demand curve indicates: A. a particular price and the corresponding quantity demanded by consumers. B. a combination of two consumer goods which buyers will...

You sell short 400 shares of Apple that are currently selling at $200 per share. You...

You sell short 400 shares of Apple that are currently selling at $200 per share. You post the 60% margin required on the short sale, and the maintenance margin requirement is 25%. At what price would you receive a margin call (assume the margin call happens immediately). $240 $248 $256 $260 None of the above You short-sell 10 shares of Amazon.com, Inc today. The stock price is $2,000 per share. What is your maximum possible gain of this trade when...

A monopoly creates a deadweight loss because the monopoly sets a price that is too low....

A monopoly creates a deadweight loss because the monopoly sets a price that is too low. makes a normal profit. does not maximize profit. produces less than the efficient quantity. produces more than the efficient quantity. 2. A ________ can price discriminate if, in part, it ________. natural monopoly; is the only seller of a good or service monopoly; can prevent resales of its product monopoly; is the only seller of a good or service perfectly competitive firm; can sell...

The government has decided that the free market price of tabacco is too low. a.Suppose the...

The government has decided that the free market price of tabacco is too low. a.Suppose the government imposes a binding price floor in the tobacco market. Use a supply and demand diagram to show the effect of this policy on the price of tobacco and the quantity to tobacco sold. Is there a shortage or surplus of tobacco? What does the market outcome depend on? b.Tobacco producers complain that the price floor has reduced their total revenue . Is this...

Question 6 6.1. Many market participants believe that sell-side analysts are too optimistic in their stock...

Question 6 6.1. Many market participants believe that sell-side analysts are too optimistic in their stock recommendations, and too slow to recommend sells. Critically discuss factors which have been shown to contribute to analysts’ bias. 6.2. James Alexander works as a sell-side analyst for an investment bank that offers both underwriting and brokerage services. James sends you a highly favourable report on a stock that his investment bank recently helped go public and for which it currently makes the market....

Suppose that you sell short 500 shares of Intel, currently selling for $70 per share, and...

Suppose that you sell short 500 shares of Intel, currently selling for $70 per share, and give your broker $25,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Intel stock is selling at: (i) $74; (ii) $70; (iii) $66? Assume that Intel pays no dividends. (i) Rate of return % (ii) Rate of return % (iii)...

Suppose that you sell short 500 shares of Xtel, currently selling for $70 per share, and...

Suppose that you sell short 500 shares of Xtel, currently selling for $70 per share, and give your broker $25,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $74; (ii) $70; (iii) $66? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values...

Question