Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received:
$$\begin{array} { c c c }
\text { Bidder } & \text { Ouantity } & \text { Price } \
\text { A } & 100 & \$ 18 \
\text { B } & 300 & 18 \
\text { C } & 400 & 16 \
\text { D } & 200 & 15 \
\text { E } & 800 & 14
\end{array}$$
How much will Bidder B have to spend to purchase all of the shares that have been allocated to him?

Question

Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received:
$$\begin{array} { c c c } 
\text { Bidder } & \text { Ouantity } & \text { Price } \
\text { A } & 100 & \$ 18 \
\text { B } & 300 & 18 \
\text { C } & 400 & 16 \
\text { D } & 200 & 15 \
\text { E } & 800 & 14
\end{array}$$
How much will Bidder B have to spend to purchase all of the shares that have been allocated to him?

Quizplus · Accepted Answer

Bidder B has bid for 300 shares at $18 per share. Therefore, he will have to spend 300 * $18 = $5,400.00 to purchase all of the shares that have been allocated to him.

Juno Markets Is Offering 900 Shares in a Dutch Auction