A customer has sold short 100 GM at 70. GM is selling for 81. The customer had previously placed a GTC buy stop order at 83. GM announces a stock split and an increase in the dividend. The stock starts to move up and the customer decides to cover the short sale at a loss and instructs his broker to buy 100 shares of GM at the market. The registered representative will:
A) sell 100 GM at 83.
B) buy 100 GM at the market and cancel the order to buy 100 GM at 83 stop GTC.
C) buy 100 GM at the market.
D) sell 100 GM at the market.
Answer: B) buy 100 GM at the market and cancel the order to buy 100 GM at 83 stop GTC.