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Question
Ms. Brown sold short 100 shares of common stock at $78 per share. The price has declined to $69. The outlook for the stock is mixed, so she would cover her short position if the stock moves up as much as $1 but hold if it continues down. Ms. Brown should place aa. sell stop order at $70.
b. buy stop order at $70.
c. sell limit order at $70.
d. buy limit order at $70.
Answer
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