If an investor places a sell order with a stop price. When the stop price occurs, the order will be executed as a market order at the dealer's next available bid price. Group of answer choices True False
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- Describe a situation when an investor would want to use a market order.a. Explain the covered call options strategy b. Graphically show a covered call options strategy, including payoff. Explain why an investor mayuse this option strategy.c. Using put-call parity, explain the shape of the payoff line (in part (a) of this question). Whatoption position does it look like and why?Graphically show a covered call options strategy, including payoff. Explain why an investor mayuse this option strategy.
- Explain how the dealer market works. Be sure to mention market makers, bid and ask prices, the Nasdaq market, and the OTC market.The NASDAQ market functions as which type of market? A. over-the-counter B. auction C. standard D. fixed locationWhat is the role played by the clearinghouse if you are seller of a put option
- 2. Graph a call to buy option and explain how its payoff is given. Explain when it is in the money, at the money and out of the money.If an investor places a places a order, the stock will be bought if its price falls to the stipulated level. If an investor order, the stock will be bought if its price rises above the stipulated level. stop-buy; stop-loss market-buy; limit-buy stop-loss; stop-buy limit-buy; market-buy limit-buy; stop-buy None of the aboveThe bid ask bounce (a) Is where prices rise after good news (b) Is the difference between the dealer's bid price and the dealer's ask price (c) Is the difference between the dealer's ask price and the dealer's bid price (d) Is the difference between the dealer's bid price and the market maker's bid price