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sergeinik [125]
2 years ago
15

Suppose you bought 100 shares of IBM at $200 per share. What is the maximum loss if you place a stop-loss order at $165

Business
1 answer:
Lynna [10]2 years ago
4 0

Answer:

$3,500

Explanation:

Placing a stop-loss order at $165 means that the last amount that the stock traded, it had a price of $165 per share.

Based on that, it is evident that each stock has lost $35 when compared to the price at which the stop-loss order was placed and the initial cost per share of $200.

Loss per share=$200-$165=$35

The loss incurred on 100 shares of IBM=loss per share*number of shares owned

The loss incurred on 100 shares of IBM=$35*100

The loss incurred on 100 shares of IBM=$3,500

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