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Question: Michael Strauss is a day trader and closes his accounts at the end of each business day. He puts a limit order to buy 100 shares of Starbucks at a price of $55, although the stock is currently selling at $57. What is the best outcome that Michael can generate in each of the following situations and why?
a. The stock price falls to $53 per share during midday and then rises to $59 at the end of the day.
b. The stock price falls to $56 per share and stays at this price until the end of the day.
c. The stock price rises to $61 per share during midday and then falls to $54 at the end of the day.
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