Investment required to buy a given nominal of stock at premium What cash investment is required to purchase $90,000 nominal of 8% stock quoted at 110?

Introduction / Context:
To buy a specified nominal amount at a premium quote, the cash investment scales by the quoted price per $100 nominal. Dividend rate does not affect the cash required to purchase nominal.

Given Data / Assumptions:

• Nominal to buy = $90,000
• Quote = 110 (i.e., $110 per $100 nominal)

Concept / Approach:
Investment = (Nominal / 100) * quoted price per 100.

Step-by-Step Solution:
Investment = (90,000 / 100) * 110 = 900 * 110 = $99,000

Verification / Alternative check:
Per-$100 block: need 900 blocks, each costs $110; total $99,000.

Why Other Options Are Wrong:
$88,000 and $88,500 correspond to discounts, not a 10% premium; $9,950 is off by a factor.

Common Pitfalls:
Confusing nominal with cash; nominal $90,000 at 110 requires more than $90,000 cash.

Final Answer:
$ 99,000