Mock Exam Questions

[Smiling Politely]

Hi all,
I came across a few questions after writing a Kaplan mock and I’m not convinced the answers provided are correct. If anyone here can provide some insight that would be appreciated:
[questions and answers removed by admin]
Thanks!

 

[Oscar]

Q1: Should be correct as stated by Schweser.
Q2: Would have thought answer A to be correct. If a recall correctly a limit sell order is set above the curret price.
Q3: Would heve gone with answer B as well. Agree that the answer of Schweser is somehow strange…

Regards,
Oscar

 

[RogerF]

Question 1 -
You’re right . CFAI provides totally opposite answer to almost exactly same question - If I were you, I would look it up in curriculum and follow their approach

 

[droox]

Q2 explanation
Limit Sell orders are placed usually at the minimum price one wants to sell .
In other words:
1)If the market price is 6 $ and you want to sell at 9 $ , you can place a limit sell order for 9 $ - and your trade will execute only when the market will reach that price .
so the MINIMUM PRICE(not the MAXIMUM PRICE) in this case 9 $ is above the market price - > a) is wrong and the MINIMUM PRICE which in this case is 9 $ is bigger then market price 6 $-> b) is also wrong
If the market price is 9 $ and you want to sell at a price cheaper than the market and place a limit sell order for 6 $ then your trade will execute immediately (who is stupid not to buy something cheaper ? ) so technically you can place Limit Orders bellow, above and at market price -> C) is the correct Answer