2019 Mock A 上午 94题
A trader buys a stock at $30 and wants to limit downside risk. Which of the fol- lowing orders will most likely guarantee that he can sell the stock at $25? (GTC means good till cancelled)
- A Put option buy market order with a strike price of $25
- B GTC, stop $25, limit $25 sell order
- C GTC, stop $25, market sell order
A is correct. Option contracts can be viewed as limit orders for which execution is guar- anteed at the strike price. Therefore, a put buy order at a strike price of $25 will guarantee selling the stock at $25.
