wk5_Ch07_solns

# B john buys 1000 abc shares at 10 each and so has to

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Unformatted text preview: order is cancelled. (b) John buys 1000 ABC shares at \$10 each and so has to pay \$10,000. (c) John doesn’t buy any shares and the order is cancelled. Problem 5 Jane buys 1000 ABC shares at \$10.60 each and so has to pay \$10,600. Problem 6 (a) At the end of the first day Susan still has her 5000 ACME shares. At the end of the second day Susan has sold her shares at \$3.70 each for a loss of \$1500 even though the shares are now trading at the higher price of \$6.50 each. (b) At the end of the first day Susan still has her 5000 ACME shares. At the end of the second day Susan still has her shares and they are valued at \$4.50 each for an unrealised profit of \$2500. The stop-loss order is still in place. (c) At the end of the first day Susan still has her 5000 ACME shares. At the end of the second day Susan still has her shares and they are valued at \$6.50 each for an unrealised profit of \$12,500. The stop-loss order is still in place. (d) At the end of the first day Susan has sold her shares at \$3.70 each for a loss of \$1500. At the end of the second day she has no shares even though the shares are now trading at the higher price of \$4.85 each. Problem 7 (a) At the end of the first day Simon still has...
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• Three '10
• HneryYip
• Stock exchange, Reed International Books, International Books Australia, Books Australia Pty, Pty Limited trading

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