wk5_Ch07_solns

The stop loss order is cancelled 3 2009 reed

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Unformatted text preview: his 5000 ACME shares. The stop-loss order is cancelled. 3 © 2009 Reed International Books Australia Pty Limited trading as LexisNexis: Solutions by Peter O’Brien for Chapter 7: Making Securities Transactions, Financial Planning in Australia, 3rd ed, by Taylor, Juchau & Houterman At the end of the second day Simon still has his shares and they are valued at $6.50 each for an unrealised profit of $12,500. (b) At the end of the first day Simon still has his 5000 ACME shares. The stop-loss order is cancelled. At the end of the second day Simon still has his shares and they are valued at $4.50 each for an unrealised profit of $2500. (c) At the end of the first day Simon still has his 5000 ACME shares. The stop-loss order is cancelled. At the end of the second day Simon still has his shares and they are valued at $6.50 each for an unrealised profit of $12,500. (d) At the end of the first day Simon has sold his shares at $3.70 each for a loss of $1500. At the end of the second day he has no shares even though the shares are now trading at the higher price of $4.85 each. Problem 8 (a) $10,000 (b) $10,000 (c) $24,000 (d) $4,000 (e) 40% (b) $12,000 (c) $24,000 (d) $4,000 (e) 50% (b) $4,000 (c) $24,000 (d) $4,000 (e) 25% (b) $6,000 (c) $24,000 (d) $4,000 (e) 29% (b) NIL (c) $24,000 (d) $4,000 (e) 20% (b) $5,000 (c) $12,000 (d) $2,200 (e) 44% (b) $6,000 (c) $12,000 (d) $2,120 (e) 53% (b) $2,000 (c) $12,000 (d) $2,440 (e) 31% Problem 9 (a) $8,000 Problem 10 (a) $16,000 Problem 11 (a) $14,000 Problem 12 (a) $20,000 Problem 13 (a) $5,000 Problem 14 (a) $4,000 Problem 15 (a) $8,000 4 © 2009 Reed International Books Australia Pty Limited trading as LexisNexis: Solutions b...
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