# Question: The bidders in a Dutch auction are as follows Bidder Number

The bidders in a Dutch auction are as follows:

Bidder Number of shares Price

A 60,000 $50.00

B 20,000 $80.00

C 30,000 $55.00

D 40,000 $38.00

E 40,000 $42.00

F 40,000 $42.00

G 50,000 $35.00

H 50,000 $60.00

The number of shares being auctioned is 210,000. What is the price paid by investors? How many shares does each investor receive?

Bidder Number of shares Price

A 60,000 $50.00

B 20,000 $80.00

C 30,000 $55.00

D 40,000 $38.00

E 40,000 $42.00

F 40,000 $42.00

G 50,000 $35.00

H 50,000 $60.00

The number of shares being auctioned is 210,000. What is the price paid by investors? How many shares does each investor receive?

## Answer to relevant Questions

An investment bank has been asked to underwrite an issue of 10 million shares by a company. It is trying to decide between a firm commitment where it buys the shares for $10 per share and a best efforts where it charges a ...An investor buys 100 shares in a mutual fund on January 1, 2015, for $50 each. The fund earns dividends of $2 and $3 per share during 2015 and 2016. These are reinvested in the fund. The fund’s realized capital gains in ...A company’s investments earn LIBOR minus 0.5%. Explain how it can use the quotes in Table 5.5 to convert them to (a) three (b) five (c) ten-year fixed-rate investments. Consider a one-year European call option on a stock when the stock price is $30, the strike price is $30, the risk-free rate is 5%, and the volatility is 25% per annum. Use the DerivaGem software to calculate the price, ...Suppose that the price of an asset at close of trading yesterday was $300 and its volatility was estimated as 1.3% per day. The price at the close of trading today is $298. Update the volatility estimate using (a) The EWMA ...Post your question