The bidders in a Dutch auction are as follows: Bidder Number of shares Price 60,000 10,000 A £50.00 В £60.00 C 30,000 £45.00 D 50,000 £39.00 E 40,000 £42.00 F 40,000 £42.00 G 70,000 £35.00 H 30,000 £60.00 The number of shares being auctioned is 180,000. Find and state the price paid by investors. Also state the number of shares received by each investor.

The bidders in a Dutch auction are as follows: Bidder Number of shares Price 60,000 10,000 A £50.00 В £60.00 C 30,000 £45.00 D 50,000 £39.00 E 40,000 £42.00 F 40,000 £42.00 G 70,000 £35.00 H 30,000 £60.00 The number of shares being auctioned is 180,000. Find and state the price paid by investors. Also state the number of shares received by each investor.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. Swenson Markets would like to sell an additional 1,000 shares of stock using a Dutch auction. The bids received are as follows: (Table below should be interpreted as follows: Bidder A is willing to pay $31 for each share, up to 100 shares while bidder B is willing to pay $29 for each share, up to 100 shares) (Hint: Remember that for Dutch auctions, sell shares first to bidder with willing to pay the highest price and then to bidder with second highest price and so on until all shares are sold. However, every bidder will pay the price of the last bidder to receive any shares. In other words, everyone will pay the lowest price of all successful bidders receiving shares regardless of their own price bids.) Bidder Price A B с 500 D 600 E 400 What is the total amount the issuer will receive from this auction? Ignore costs. Quantity 100 100 $31 $29 $28 $27 $26
A speculator can choose between (i) buying 108 shares of a stock for $50.58 per share, and (ii) buying 1080 European call options on that stock with a strike price of $42 for $3.99 per option. At maturity, what is the stock price that would make the two alternatives equally profitable? a. 1.58 O b. 42.81 O c. 47.57 d. 45.96 e. 14.18
Lulu Industries is in the process of selling shares in an auction IPO. At the end of the bidding period, Lulu's investment bank has received the following bids: Number of Shares Bid 50,000 25,000 25,000 100,000 125,000 Price ($) $19.50 $19.25 $19.10 $19.00 $18.75 $18.50 $18.25 $18.00 $17.75 $17.50 What will the offer price of these shares be if Lulu is selling 0.5 million shares? $18.75 $19.10 $18.50 75,000 150,000 240,000 80,000 125,000 $18.25
You buy 1 put contract with a strike price of $60 on a stock which you own 100 shares. What are the expiration total values for this position (100 stock shares plus 1 put contract) for prices of $50 and $60 if the put premium is $1.80?
Suppose a market consists of four stocks. The number of shares outstanding for each stock as well as the stock prices in two consecutive days are as follows: Stock A Stock B Stock C Stock D Shares outstanding 200 1000 400 3000 I $5 $30 $100 $40 Ро $15 $25 $80 $50 a) Compute the percentage increase in the price-weighted index for this market. b) Compute the percentage increase in the value-weighted index for this market. P₁
Dutch auction for $80 billion of US Treasury bills. Noncompetitive Bids total $20 billion, and competitive bidders in descending order of offer price are as giv table. Competitive Bids (in billions) Discount Rate Bid Bid Price per $100 0.0280% 99.99782 0.0285% 99.99778 0.0287% 99.99777 0.0290% 99.99774 0.0291% 99.99774 0.0292% 99.99773 0.0291% 99.99773 What is the discount rate necessary to sell all amount of Treasury bills? $5 $10 $15 $30 $45 $15 $10
You submitted an 1OC (immediate-or-cancel), buy order for 200 shares at a limit price of $30 per share. Currently there is a sell limit order for 160 shares at $30 per share in the trading system. How many of your shares will get filled: O A. 40 O B. 160 O C. Zero, order will be cancelled
You would like to buy shares of Sirius Satellite Radio (SIRI) The current ask and bid quotes are $3.96 and $3.93 respectivety You place a market buy-order for 500 shares that executes at these quoted prices How much money did it cost to buy these shares?
You would like to sell 220 shares of Echo Global Logistics, Inc. (ECHO). The current ask and bid quotes are $15.44 and $15.39, respectively. You place a limit sell order at $15.43.If the trade executes, how much money do you receive from the buyer?
Suppose that a bank purchased 15 million shares of Company E. The shares are bid $34.2 and offer $35.4. The mean and standard deviation of the bid-ask spread are 0.034483 and 0.054, respectively. What is the cost of liquidation that we are 99% confident will not be exceeded (i.e., in a stressed market condition)? O 2.402 O 0.259 O 1.201
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Number of Shares 120,000 200,000 560,000 1,200,000 1,240,000 800,000 400,000 Price $14.60 14.40 14.20 14.00 13.80 13.60 13.40 Assuming Roundtree would like to sell 2.08 million shares in its IPO, what will the winning auction offer price be? The price will be $ per share. (Round to two decimal places.)
55. A trader submits an all-or-nothing, immediate-or-cancel [fill or kill] order to sell 800 shares at €17.35. There are four buy limit orders standing in the stock's order book at the time the order is entered. The order book appears as follows: Limit Buy Orders Limit Sell Orders 300 shares @ €17.35 100 shares @ €17.45 200 shares @ €17.35 400 shares @ €17.48 800 shares @ €17.33 500 shares @ €17.50 200 shares @ €17.31 900 shares @ €17.51 The number of shares of the order that will be executed is closest to: a. 0 b. 200 c. 300 d. 500 e. 800 f. None of the above answers is correct. 56. Referring to the order book in the previous question, there are two limit orders to buy at €17.35. The 300-share order is listed first because: a. The 300-share order is larger than the 200-share order and order size has precedent. b. The trader placing the 300-share limit order to buy agreed to pay a larger commission than the 200-share trader. c. The trader placing the 300-share limit…

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