Complete question:
Rita placed an order for 300 shares of each of four separate IPOs (Orders A, B, C, and D) with an offer price of $16 each. She received 100 shares of Order B, 200 shares of Order D, and 300 shares of the other orders. At the end of the first day, Order A was overpriced by $2 a share, Order B was underpriced by $4 a share, Order C was correctly priced, and Order D was overpriced by $1 a share. What was combined total profit or loss for the first day on these four orders
Multiple Choice
−$400 $400 $100 −$100 −$300
Answer:
$400 was combined total profit or loss for the first day on these four orders
Solution:
Given,
Rita placed an order for 300 shares of each of four separate
Offer price of $16 each
She received 100 shares of Order B, 200 shares of Order D, and 300 shares of the other orders.
Now ,
Order No. of shares Profit/ (loss) per share Net profit/ (loss)
A 300 $ (2) $ (600)
B 100 $ 4 $ 400
C 300 $ - $ -
D 200 $ (1) $ (200)
Net profit/ (loss) $ (400)
Net loss for first day is $400.