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A pension fund purchased 15 round lots of aldridge, inc., stock at the closing price of...

A pension fund purchased 15 round lots of aldridge, inc., stock at the closing price of the day yesterday. the stock opened at $34.60 per share today, the current price is $34.50 per share today, the current price is $34.50 per share, and the stock is down by $.20 per share. what was the cost of that purchase? A. 71,200 B. 52,050 C 4,410 D. 5,205

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Answer #1

Meaning of round lots means 1 lot is of standard size of 100 shares.

number of lots purchased = 100

Last or closing price of Today =$34.50 per share

Stock is down by$0.20 per share or -0.20

Closing price of today = Closing price of yesterday + change

34.50 = Closing price of yesterday + (-0.20)

34.50+0.20 = Closing price of yesterday

Closing price of yesterday = 34.70 per share

Total cost of purchases = per share price * standard size * number of lots purchased

=34.70*100*15

=52050

So cost of purchase is $52050

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