Investment Science 8th Edition English Answers CHAPTER 3 HOW SECURITIES ARE TRADEDCHAPTER 3 HOW SECURITIES ARE TRADEDPROBLEM SETS 1 Answers to this problem will vary2 The SuperDot system expedite

nvestor would have to sell the stock at $15 in order to break even. This is because the investor purchased the stock for $20 and paid a $1 commission, bringing the total cost to $21. If the investor sells the stock at $15, they would receive $14 (after paying another $1 commission), resulting in a loss of $7.b. The investor would have to sell the stock at $22 in order to break even. This is because the investor purchased the stock for $20 and paid a $1 commission, bringing the total cost to $21. If the investor sells the stock at $22, they would receive $21 (after paying another $1 commission), resulting in a profit of $0.7.7. a. The investor would have to sell the stock at $27.50 in order to break even. This is because the investor purchased the stock for $30 and paid a $1 commission, bringing the total cost to $31. If the investor sells the stock at $27.50, they would receive $26.50 (after paying another $1 commission), resulting in a loss of $4.50.b. The investor would have to sell the stock at $32.50 in order to break even. This is because the investor purchased the stock for $30 and paid a $1 commission, bringing the total cost to $31. If the investor sells the stock at $32.50, they would receive $31.50 (after paying another $1 commission), resulting in a profit of $0.50.8. a. The investor’s account equity is currently $9,000 ($10,000 - $1,000). The maintenance margin requirement is 30%, so the minimum amount of equity the investor must maintain in their account is 30% of $30,000, or $9,000. Since the investor’s current account equity is equal to the maintenance margin requirement, they would not receive a margin call.b. If the stock price falls to $25, the total value of the investor’s portfolio would be $25,000 ($25 * 1,000). The account equity would then be $5,000 ($25,000 - $20,000), which is below the maintenance margin requirement of $9,000 (30% of $30,000). Therefore, the investor would receive a margin call for the amount of $4,000 ($9,000 - $5,000) to meet the maintenance margin requirement.9. a. The total commission paid by the investor is $40 ($20 for buying the stock and $20 for selling the stock).b. The total commission paid by the investor is $20. This is because the investor only bought the stock and did not sell it.10. a. The investor would have to sell the stock at $22.50 in order to break even. This is because the investor purchased the stock for $20 and paid a $1 commission, bringing the total cost to $21. If the investor sells the stock at $22.50, they would receive $21.50 (after paying another $1 commission), resulting in a profit of $0.50.b. The investor would have to sell the stock at $17.50 in order to break even. This is because the investor purchased the stock for $20 and paid a $1 commission, bringing the total cost to $21. If the investor sells the stock at $17.50, they would receive $16.50 (after paying another $1 commission), resulting in a loss of $4.50