 Hello and welcome to the session. In this session we will discuss the following question and the question says calculate the money required to buy one 350-20 dollar shares at a premium of $7, part 2 275 $60 shares at a discount of $10, part 3 $50 $75 shares quoted at $71.50. Let's start the solution now. In part 1 the number of shares to be bought is given to be $350 so number of shares to be bought is equal to $350. Now $20 shares at a premium of $7 means the nominal value of the share is $20 that is the original value of the share at which the company sells to investors is $20 so nominal value of the share is equal to $20 since the premium is given to be $7 so the market value the price at which stock is bought or sold is equal to the nominal value which is $20 plus the premium which is $7 and this is equal to $27 hence the money required to buy one share is equal to the market value of each share which is $27 we have to find the money required to buy 350 shares so therefore money required to buy 350 shares is equal to $350 into $27 which is equal to $9,450 so this is the answer for part 1 now let's see part 2 we are given that the nominal value of each share is $60 and discount is $10 so in part 2 money required to buy one share is equal to the nominal value which is $60 minus the discount which is $10 and this is equal to $50 now we have to find the money required to buy 275 shares so therefore money required to buy 275 shares is equal to $275 into $50 which is the money required to buy one share and this is equal to $13,750 this is the answer for part 2 now in part 3 we have given the nominal value of each share which is $75 and the quoted price which is $71.50 now the quoted price of a share means its market value so in part 3 we are given the quoted price or the market value of each share so the money required to buy one share is equal to $71.50 we have to find the money required to buy 50 shares so therefore money required to buy 50 shares is equal to $50 into money required to buy one share which is $71.50 and this is equal to $3575 this is the answer for part 3 with this we end our session hope you enjoyed the session