QUESTIONS 79 THROUGH 90 RELATE TO EQUITY INVESTMENTS

85. A trader who has bought a stock at $30 is concerned about a downside movement in the stock and would like to place an order that guarantees selling it at $25. Which of the following will most likely help the trader achieve her objective? (GTC = Good-till-cancelled) A. “GTC, stop 25, market sell” order B. “GTC, stop 25, limit 25 sell” order C. “put option buy” market order with a strike price of 25