Chapter 04 · Section 4.1
Stop Orders- Market Price
Buy 3 CBOE BankAm June 15 calls stop-loss 3 1/2
When you placed this order, the market price was:
a) Above 3 1/2.
b) At 3 1/2.
c) Below 3 1/2.
You, the investor, want to liquidate your position to prevent further loss.
You had a short call position. You fear a rise in prices.
You must place the trigger price above the prevailing market price.