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Ms Brown Sold Short 100 Shares at $78 Per Share

Question 54

Multiple Choice

Ms. Brown sold short 100 shares at $78 per share. The price has declined to $69. The stock's outlook is mixed, so she would like to cover her short position if the stock moves up as much as $1, but hold if it continues down. Ms. Brown should place a:


A) sell stop order at $70.
B) buy stop order at $70.
C) sell limit order at $70.
D) buy limit order at $70.

Correct Answer:

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