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25 June, 00:06

The current price of XUM stock is $35. Jason places a limit order for 100 shares at $30, GTC. The price falls to $30.05 and then rises over the course of a month to $42. Which is correct?

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  1. 25 June, 00:12
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    Jason has a gain of $1,200.

    Explanation:

    since the price rised to $42 from $30.05, it rised by $42 - $30.05 = $11.95

    but the limit order was placed at $30 and the price fell to $30.05.

    from the limit order the price was at $0.05

    the total rise price = $11.95 + $0.05 = $12

    gain in price = 100*$12 = $1200

    Therefore, Jason will gain $1200.
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