For the problems related to short selling and buying on margin (e.g., #4,9), be sure to first work through the examples from class and use those examples as a "template".

Stock trading: Using your OTIS account, sell short at least two stocks.  Naturally, these are stocks that you might expect to fall in price.  Describe, in one paragraph, why you think that the price of each stock may drop.  Record these in your OTIS "journal".  (These must be stocks you do not currently own.  Otherwise, OTIS will not allow you to sell short.)    

Next, buy one put option contract in the same stock that you sold short.  (Note that you can look out option trading symbols from http://finance.yahoo.com by first looking up the stock quote, then click "options", ignoring the ".x".  For example, the trading symbol for options on SPY that expire in Jan 09 with an exercise price of 145 is FYNLO.)   You will find that one contract is actually tied to 100 shares, even out options are quoted on a "per share" basis.  So one option contract "costs" 100 times the quoted option price.  In OTIS, select "Trade Options" then "buy to open".

Finally, buy 100 shares of stock in one new firm, and simultaneously buy one call option 

Brief solutions (1a)  Explicit fees of 70,000 and implicit fees of $300,000 (underpricing);   

(4)  The dividend will be paid from the securities posted as margin.

(6a) buy filled at 50.25;    (6b) 51.50;      (6c) increase position with a buy

(9a)  Be neat and careful, and you will see a pattern developing.  This will make your calculations go much more quickly.
Recall that interest expense on the loan will increase the loan amount outstanding (after interest has had time to accrue), thereby reducing equity.
(9a) 13.3%;  0%;  -13.3%; (no interest charge because price changes immediately)
(9b) P=13.33;     (9c) P=26.67;     (9d)  10.67%;   -2.67%;   -16%  (Note that interest eats into your returns).