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Kallie Placed an Order with Her Broker to Purchase 500

Question 46

Multiple Choice

Kallie placed an order with her broker to purchase 500 shares of each of three IPOs that are being released this month.Each IPO has an offer price of $19 a share.The number of shares allocated to Kallie,along with the closing stock price at the end of the first day of trading for each stock,are as follows:  Stock ABCSharesAllocated180500100End ofDay 1 Price$21.1015.5028.60\begin{array}{c}\begin{array}{|l|}\hline\text { Stock }\\\\\hline \mathrm{A} \\\hline \mathrm{B} \\\hline \mathrm{C} \\\hline \end{array}\begin{array}{l|}\hline\text {Shares}\\\text {Allocated}\\\hline180 \\ \hline 500 \\ \hline 100\\\hline \end{array}\begin{array}{l|}\hline\text {End of}\\\text {Day 1 Price}\\\hline \$ 21.10 \\ \hline 15.50 \\ \hline 28.60 \\ \hline\end{array}\end{array}

What is her total profit or loss on these three stocks as of the end of the first day of trading for each stock?


A) -$412
B) -$540
C) -$236
D) $133
E) $1,370

Correct Answer:

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