CFA特许金融分析师一级押题_权益.pdf

Equity(1)  A trader who owns shares of a stock currently trading at $100 per share places a “GTC, stop $90, limit $85 sell” order (GTC means good till cancelled). Assuming the specified stop condition is satisfied and the order becomes executed, which of the following statements is most accurate? A. The order becomes a market order when the price falls below $85 and remains valid for execution. B. The trader faces a maximum realized loss of $15. C. The order will be executed at either $90 or $85. Equity(1)  Solution: B. B is correct. The order becomes valid when the price falls to, or below, $90. The “limit $85 sell” indicates that the trader is unwilling to sell below $85. Thus, the trader faces a maximum loss of $ 15 ($ 100 – $85). A is incorrect. The order becomes invalid for execution when the price falls below $85. C is incorrect. The order can be executed at any prices between $85 and $90. Equity(2)  A market has the following limit orders standing on its book for a particular stock: Bid Size Limit Offer Size Limit Buyer Seller (# of shares) Price($) (# of shares) Price($) 1 500 18.50 1 200 20.20 2 300 18.90 2 300 20.35 3 400 19.20 3 400 20.50 4 200 20.10 4 100 20.65 5 100 20.15 5 200 20.70  If a trader submits an immediate-or-cancel limit buy order for 700 shares at a price of $20.50, the average price the trader would pay is closest to: A $20.35. B $20.58. C $20.50. Equity(2)  Solution: A.  A is correct. The limit buy order will be filled first with