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The Great Wall Street
Fortune Hunt


"When it's a
question of
money,
everyone is
of the same
religion"

Voltaire


THE GREAT WALL STREET FORTUNE HUNT is an authentic computerized model of the real investment world. The opportunities for investment in the game represent the thousands of alternatives available on the various exchanges.

You'll find conservative blue chips like IBM (International Business Machines Corporation) and high risk high flyers like WOW (Wildcat Oil Western). You'll find the fast food industry represented by McDonald's Corporation and high technology manufacturers represented by Texas Instruments.

Each of the companies available for investment not only represents itself but other similar companies as well. Therefore the Standard Oil Company (Indiana) also represents Shell, Mobil, Arco and the other large petroleum companies.

Each of the investments has a different sensitivity to the news flashes which come across the TV screen. For example - some investments will go up at a time of world crisis and others will go down. The inherent sensitivity of each investment to the various categories of news is graphically displayed on the gameboard.

Your ultimate objective is to anticipate investment fluctuations swiftly enough to take full advantage of the many buying and selling opportunities which will occur in a different way every time you play.

The rules of The Great Wall Street Fortune Hunt are designed to replicate real life as closely as possible. You can play it at four levels. It is highly recommended that you feel thoroughly comfortable at one level before incorporating the next level as part of the game. Have fun! Make money!!!


Game Components

1 Odyssey2 Expanded Memory Game Cartridge

2 Investment Record Pads & Option-Pricing Calculators
(represented by the following two tables)
CALLS/share price per call OPTION PRICE CALCULATOR
 STOCK PRICE 
TEX
  USS
  GPT
  LOK
  WHL
  MCD
  XON
  USH
  ABC
  NEE
$10-$13
$3.00
$2.25
$3.00
$3.75
$1.75
$2.25
$2.75
$3.50
$2.50
$2.00
14- 17
3.50
2.75
3.50
4.50
2.00
2.75
3.50
4.25
3.00
2.50
18- 25
4.25
3.25
4.25
5.25
2.50
3.25
4.25
5.25
3.75
3.00
26- 35
5.75
4.50
5.75
7.25
3.50
4.50
5.50
7.00
5.00
4.25
36- 45
7.75
6.00
7.75
9.75
4.50
5.75
7.50
9.25
6.50
5.50
46- 55
9.75
7.50
9.75
12.00
5.75
7.25
9.25
11.75
8.25
7.00
56- 65
11.75
8.75
11.75
14.50
6.75
8.75
11.00
13.75
9.75
8.25
66- 75
12.50
9.50
12.50
15.50
7.25
9.25
11.75
14.75
10.50
9.00
76- 85
7.75
6.00
7.75
9.75
4.50
5.75
7.50
9.25
6.50
5.50
86- 90
4.50
3.25
4.50
5.50
2.50
3.50
4.25
5.25
3.75
3.25
PUTS/share price per put
 STOCK PRICE 
  TEX
  USS
  GPT
  LOK
  WHL
  MCD
  XON
  USH
  ABC
  NEE
$10-$13
$2.25
$1.50
$2.25
$2.75
$1.00
$1.50
$2.00
$2.50
$1.75
$1.50
14- 17
2.50
1.75
2.50
3.25
1.25
1.75
2.50
3.25
2.00
1.75
18- 25
3.00
2.00
3.00
4.00
1.50
2.00
3.00
3.75
2.50
2.00
26- 35
4.50
3.00
4.50
5.75
2.00
3.00
4.25
5.50
3.50
2.75
36- 45
6.00
4.00
6.00
7.75
3.00
4.00
5.50
7.50
4.75
3.75
46- 55
7.50
5.00
7.50
9.75
3.50
5.00
7.00
9.25
5.75
4.75
56- 65
8.75
6.00
8.75
11.75
4.00
6.00
8.25
11.00
7.00
5.75
66- 75
10.50
7.00
10.50
13.50
4.75
7.00
9.75
13.00
8.25
6.75
76- 85
13.00
8.25
13.25
17.00
6.00
8.75
12.25
16.25
10.25
8.25
86- 90
17.50
11.75
17.50
22.75
7.75
11.75
16.25
21.75
13.75
11.00
Note: Options are not available for stocks priced under $10.00 or over $90.00
INVESTMENT RECORD
ACCT.
NO.
INVST. 
SHARES 
BUY PRICE 
SELL PRICE 
MARGIN
(LOAN) 
OPTION
PUT/CALL 
+PROFIT 
-LOSS 
+/-
INT.PAID 
CASH
ON HAND 
NET WORTH
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           
                       
           

1 Master Strategy Gameboard
(The following three charts, legend, and graphic represent the gameboard)

  SENSITIVITY FACTORS >  G=GNP  I=INT.RATE   P=POLITICAL
 
  ------------------------------------------------------------------------
S                                                P
H                                                P                       I
A                                                P                       I
R           G                                    P                       I
E           G                                    P                       I
S           G    G                               P             I         I
  ----------G----G-------------------------------P-------------I---------I
            GI   G                        G      P             I         I
C           GI   G                        G      P             I         I
A GI        GI   G    G     I             G      P             I        GI
L GI   G    GI   G    G    GI             G      P       G     I        GI
L GI   G    GI   G    G    GI        G    G      P       G     I        GI
  GI   G    GI   G    G    GI   G    GI   G      P       G    GI        GI
  GI---G----GI---G----GI---GIP--G----GI---G----G-P--G----G----GI--------GI-
  GI   G    GI   G    GI   GIP  G    GI   G    G P  G    G    GI        GI
  GI   GI   GI   G    GI   GIP  GI   GI   G    G P  G    G    GIP  G    GI
P GI   GI   GI   G    GI   GIP  GI   GI   G    G P  GI   G    GIP  G    GI
U GI   GI   GIP  G    GI   GIP  GI   GI   G    GIP  GI   G    GIP  G    GI
T GI   GI   GIP  G    GI   GIP  GI   GI   G    GIP  GI   G    GIP  GI   GI
  GIP  GI   GIP  GIP  GIP  GIP  GI   GIP  GIP  GIP  GIP  GIP  GIP  GIP  GIP
  GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP
         P                        P

  SRS  ABC  TWA  TEX  MYG  AET  SOI  USS  NME  XON  PAG  SLZ  WFB  JWL  GPT


  SENSITIVITY FACTORS >  G=GNP  I=INT.RATE   P=POLITICAL
 
  -------------------------------------------------------------------------
S                                I        G
H                                I        G
A       I                        I        G
R  I    I        G               I        G
E  I    I        G               I        G
S  I   GI        G              GI        G    G
  -I---GI--------G--------------GI--------G----G---------------------------
   I   GI        G              GI        GI   G     I
C  I   GI        G              GI        GI   G     I
A  I   GI        G              GI        GI   G     I
L  I   GI        G    G         GI        GI   G     I              I     P
L  I   GI        G    G    G    GI        GI   GI    I              I     P
   I   GI        G    G    G    GI        GI   GI    I              I     P
  GI---GI--------G----G----G----GI--------GI---GI----I--------------I---G-P
  GI   GI        G    G    G    GI        GI   GI    I    I         I   G P
  GI   GI        G    G    G    GI        GI   GI    I    I         I   G P
P GI   GI        G    G    G    GI    I   GI   GI    I    I         I   G P
U GI   GIP       GI   G    GI   GI    I   GI   GI    I    I         I   GIP
T GI   GIP  G    GI   G    GI   GI    I   GI   GI    I    I         I   GIP
  GIP  GIP  GI   GI   GIP  GIP  GIP   I   GIP  GI   GIP   I     P  GIP  GIP
  GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP--GIP
              P    P                 G P         P       G P  GI

  NEE  MER  TOY  LOK  MCD  MTC  USH  WHL  SMC  WOW  RES  GLD  BDG  BND  IBM


                       V      V      V      V      V      V      V      V      V      V
T  #######################################################################################
-
B  ANNUAL PRIME RATE   7      8      9      10     11     12     13     14     15     16
I
L  ANNUAL T-BILL RATE  6      7      7.5    8.5    9.5    10     11     12     13     13.5
S
   QUARTERLY T-BILL   .015   .018   .019   .021   .024   .025   .028   .03    .033   .034


                       V      V      V      V      V      V      V      V      V
T  ###############################################################################
-
B  ANNUAL PRIME RATE   17     18     19     20     21     22     23     24     25
I
L  ANNUAL T-BILL RATE  14.5   15.5   16     17     18     18.5   19.5   20.5   21
S
   QUARTERLY T-BILL   .036   .039   .04    .043   .045   .046   .049   .051   .053

LEGEND
ABC American Broadcasting Companies, Inc.     PAG Proctor & Gamble Company
AET Aetna Life & Casualty Company RES Real Estate
BDG Bandag, Inc. SLZ Jos. Schlitz Brewing Company
BND Corporate Bond SMC A.O. Smith Corporation
GLD Gold SOI Standard Oil Company (Indiana)
GPT General Portland Cement, Inc. SRS Sears, Roebuck & Company
IBM International Business Machines Corp. TEX Texas Instruments, Incorporated
JWL Jewel Companies, Inc. TOY Toyota Motor
LOK Lockheed Corporation TWA Trans World Corporation
MCD McDonald's Corporation USH U.S. Home Corporation
MER Merrill Lynch & Co., Inc. USS United States Steel Corporation
MTC Monsanto Company WHL Western Holdings Limited
MYG The Maytag Company WFB Wells Fargo & Company
NEE New England Electric System WOW  Wildcat Oil Western
NME  National Medical Enterprises, Inc. XON Exxon Corporation


2 Sets of Share/Margin Tokens

2 Prime Rate Tokens

1 Time Frame Token


The Basic Game

1. The Great Wall Street Fortune Hunt can be played by one or more people. If more than two people are playing, the players divide into teams representing investment syndicates.

2. Each investor (or investment syndicate) starts out with $100,000.

3. Each investor or investment syndicate can enter a maximum of seven investments into the computer.

Players with a net worth of $100,000 or more may have as many as 3 investments at any one time entered in the computer.

Players with $200,000 or more may have as many as 4 investments at any one time entered in the computer.

Players with $300,000 or more may have as many as 5 investments at any one time entered in the computer.

Players with $400,000 or more may have as many as 6 investments at any one time entered in the computer.

Players with $500,000 or more may have as many as 7 investments at any one time entered in the computer.

If a player's net worth falls below $25,000... no new investments may be entered into the computer. Only SELL orders can be executed.

A player with a net worth of more that $25,000, but less than $100,000, is limited to 2 investments in the computer at any one time.

Player's
NET WORTH
Player's maximum
NUMBER OF
INVESTMENTS
$25,000 to under
$100,000
2 INVESTMENTS
$100,000 3 INVESTMENTS
$200,000 4 INVESTMENTS
$300,000 5 INVESTMENTS
$400,000 6 INVESTMENTS
$500,000 or more    7 INVESTMENTS

4. Play is divided to represent a time span of five years. Each year is divided into four quartered periods. Approximately 5 minutes of computer time is equal to one quarter (3 months).

Advance the time frame marker on the gameboard by one position each time the computer signals the end of a quarter.

5. All investments entered in the computer must be sold at the end of each year.
(Four quarters)

Buy and sell orders are entered into the computer thru your Odyssey2 alpha-numeric keyboard.

6. A player's total investment may not exceed his or her net worth.

Players may audit each other's holdings at any time. The penalty for investing more than a player's net worth is a fine of double the discrepancy and the loss of buying and selling privileges during the entire quarter following the audit.

7. The winner is the investor (or syndicate) accumulating the greatest net worth after five years (twenty quarters).
Shorter or longer games may be played if agreed upon in advance.


Start-up

Important! Always be sure that the power to your Odyssey2 console is turned off before inserting a game cartridge. This protects the electronic components and extends the life of the unit.

To begin

1. Insert the cartridge into the slot of the Odyssey2 console with the label side of the cartridge facing the alpha-numeric keyboard.

2. Turn on the power by pressing the power button of the console. SELECT GAME will appear on your TV screen. If it does not, press the RESET key on the alpha-numeric keyboard.

3. Press 0 on the numeric section of the Odyssey2 keyboard.

4. Investment choices and current price per share will travel across the top of your TV screen.

5. Up-to-the-minute news flashes will travel across the center of your TV screen.

6. The bottom of the screen displays each player's Computerized Investment Portfolio which keeps track of player's investment and capital.

7. The bar chart reflects the over-all market performance during each quarter of a year.

8. If more than two people are playing, divide into teams. There will be plenty of action for everyone.


Level One
STRAIGHT INVESTMENT TRANSACTIONS

The Rules of the Game
(1 or more players)

1. All investment transactions are entered into the computer through the keyboard.

2. The player's Computerized Investment Portfolios are located at the bottom of the television screen. Only one player's portfolio is displayed on the screen at a time

Each Investment Portfolio has eight positions.

3. Move the joystick of your hand control to the left to gain access to you Investment Portfolio. You are now in position #1.

The left hand control activates player one's portfolio that shows up in Money Green on color TV*.

The right hand control activates player two's portfolio that show up in Bullion Gold.

 
1.ACT 1         $100000
 
* Colors may vary according to individual TV's color adjustments.

4. Each player has access to eight positions in the Investment Portfolio.

Position #1 displays the balance in the player's portfolio account. Each player starts off with $100,000.

Positions #2 thru #8 are for entering the player's investments in the portfolio.

Push the joystick forward to move or "scroll" past position #1. Pull the joystick towards you to "scroll" in reverse.

5. To buy an investment, use the joystick of your hand control to scroll to an "open" account (positions 2 thru 8). The news flashes will disappear from the center of your screen.

Position No. No. of shares
|            |
v            v
2.???      ??00    AT    ??
   ^                     ^
   |                     |
Investment             Price
choice                 per share

Enter your investment by typing the letters representing your selection on the keyboard.

Example
WHL = WESTERN HOLDINGS, LTD.
 
2.WHL     ??00    AT    ??
 

6. Enter the number of shares desired on the numeric section of you keyboard. Shares are available in lots of 100 up to 9900 shares.

The latest market price per share will be displayed at the far right of your portfolio. This figure will be updated until the time you signal the computer to make the buy.

Enter the first two digits of the number of shares desired. If the figure is less than 1000, enter 0 and then the second digit. (Example: five hundred shares is expressed as 0500.)
 
2.WHL     0500    AT    50
 

7. Press ENTER on the keyboard to execute the buy order. The news flashes will reappear on the screen. (If you change your mind about buying the shares, press CLEAR instead of ENTER. The question marks will reappear and your account is ready for a new entry.) The price paid per share will remain in your portfolio to serve as reference during the game. Important! Data which has not been entered or cleared will be displayed in every open account in both portfolios. Be sure to press ENTER or CLEAR before going to another open account in either portfolio.

8. If you make an error entering the investment symbol, press CLEAR and then follow with the correct three letter entry. The question marks will not appear when you press CLEAR. The computer will signal an incorrect investment entry by continuing to display question marks when you enter the number of shares desired.

9. To sell an investment, use the joystick of you hand control to scroll to the desired position in your portfolio.

10. Press the ACTION BUTTON to execute your sell order. You shares will be sold in lots of 100. You can sell some of them or all of them at this time.

The news flashes at the center of the screen will be replaced by a display showing the changing balance in your portfolio.

The transaction is recorded on your investment record pad. (See end of 'Level Two' section of instructions.)

Important: If one player is making a transaction and another player signals for computer access by moving the joystick of the hand control, the transacting player has a ten second grace period to complete the buy or sell order before the other player's portfolio will be displayed on the screen.

The news flashes will not be displayed when a portfolio is scrolled to an open account or when a buying or selling transaction is being executed. The news will automatically be redisplayed when a transaction is completed or when both portfolios are scrolled to the #1 Account Balance position.


The Gameboard

1. The gameboard is divided into four sections.

A. Investment positions.
B. T-Bill market.
C. Time frame indicator.
D. Prime rate indicator.

2. Each investor or syndicate receives a set of numbered share/margin tokens at the beginning of the game. When a straight investment transaction is entered into the computer, place a share token with the $ sign up in the SHARE section of the gameboard. The appropriate investment should correspond with the account in the portfolio which holds the buy. This system provides a quick reference to all of the accounts in the portfolios.

3. Every investment in the game has a different sensitivity to changing national and international conditions in three areas.

A. Gross National Product (GNP):
The total amount of goods and services produced by the entire country during one year.

B. Prime Interest Rate:
The interest rate banks quote as charging their best corporate customers.

C. Political Instability:
Including national legislation and international friction.

The relative sensitivity to every investment in the game is graphically illustrated by the bar charts on the gameboard. For example, SRS (Sears) is highly sensitive to changes in the prime interest rate and far less affected by political events.

4. The news flashes indicate events which can have positive or negative effects on the GNP, Prime Interest Rate and the international political scene.

5. The computer will change the price of each investment up or down according to its sensitivity to the events reported by the news bulletins. Important: If a stock's price falls to 00, it will remain there for the duration of the game.

6. The Time Frame Indicator on the gameboard is divided into twenty quarters. (Five years.) The Time Frame Marker is placed on 1 at the beginning of each game and advanced to the next position at the end of each playing round.

The computer will signal the end of a period by freezing prices, halting trade and scrolling each portfolio of investments. The computer will automatically halt to call your attention to an investment which has suffered a loss during the quarter. Push the joystick of the appropriate hand control to continue scrolling action.

7. The Prime Rate Indicator will perform an important function in game levels two through four. It keeps track of the interest banks quote as charging their best corporate customers.

8. There are two prime rate tokens. The gold token is used to mark the annual prime rate existing at the beginning of a quarter.

The silver token is used to track fluctuations in the prime rate during the quarter. These changes in the prime rate will be reported by the news bulletins on your TV screen. The tokens are moved around the outer numbers which give the prime rate on an annual basis. The inner numbers give the prime rate on a quarterly basis.

Important: The prime rate cannot fall below 7% annually on the game board.

At the start of the game, set both tokens at the prevailing prime rate as quoted in the financial pages of your newspaper - or at 11%. Changes in the prime rate will be reported by the news flashes.

9. Keep careful track of changes in the prime rate. It has direct effect on investment prices. It is used to determine the rate of return on Treasury Bills.

10. The investor or investment syndicate with the greatest net worth at the end of the game wins.

WHEN YOU ARE THROUGHLY FAMILIAR WITH THE WORKINGS OF LEVEL ONE, YOU ARE READY TO GO TO LEVEL TWO.


Level Two
STRAIGHT INVESTMENT TRANSACTIONS &

TREASURY BILLS

1. Treasury Bills. Ninety day Treasury Bills are sold by the government every week. The interest rate on T-Bills is directly related to the Prime Interest Rate. A good rule of thumb is: PRIME RATE = 115% of the T-Bill rate. This return is pre-computed for you on the T-Bill section of the gameboard. (The numbers are rounded to facilitate play.)

2. Three month T-Bills may be bought at the beginning of every quarter.

3. Interest on T-Bills is payable at the end of the quarter at the prevailing rate at the beginning of the quarter.

4. Do not enter a T-Bill transaction into the computer.

5. Place one of your investment tokens on the T-Bill section of the gameboard.

6. Use the investment record pad to keep track of your transactions and to maintain a constant update on your net worth.

7. Record the buy on the Investment Record. Deduct the amount of the T-Bill from the cash on hand section.

8. Add the principal plus interest to your cash on hand at the end of the quarter.

Use the quarterly T-Bill rate to compute the interest.

See the following examples:

YOU BEGIN THE GAME WITH A NET WORTH OF $100,000.
You buy 500 shares of WHL at $50. per share
INVESTMENT RECORD
ACCT.
NO.
INVST. 
SHARES 
BUY PRICE 
SELL PRICE 
MARGIN
(LOAN) 
OPTION
PUT/CALL 
+PROFIT 
-LOSS 
+/-
INT.PAID 
CASH
ON HAND 
NET WORTH
 2
 WHL
 500
 50
           
75,000 
 100,000
 25,000
         

WHL rises to $55. per share and you decide to sell.
INVESTMENT RECORD
ACCT.
NO.
INVST. 
SHARES 
BUY PRICE 
SELL PRICE 
MARGIN
(LOAN) 
OPTION
PUT/CALL 
+PROFIT 
-LOSS 
+/-
INT.PAID 
CASH
ON HAND 
NET WORTH
 2
 WHL
 500
 50
 55
   
 2,500
   
 75,000
 100,000
 25,000
 27,500
   
 102,500
 102,500

You invest $1000. at the beginning of a quarter when the prime rate is 14%.
INVESTMENT RECORD
ACCT.
NO.
INVST. 
SHARES 
BUY PRICE 
SELL PRICE 
MARGIN
(LOAN) 
OPTION
PUT/CALL 
+PROFIT 
-LOSS 
+/-
INT.PAID 
CASH
ON HAND 
NET WORTH
 2
 WHL
 500
 50
 55
   
 2,500
   
 75,000
 100,000
 25,000
 27,500
   
 102,500
 102,500
 3
 T-BILL
 
 1,000
           
 101,500
 102,500
           

At the end of the quarter, compute and enter your profit using the quarterly T-Bill rate on the gameboard. ($1,000 x .03 = $30.).
INVESTMENT RECORD
ACCT.
NO.
INVST. 
SHARES 
BUY PRICE 
SELL PRICE 
MARGIN
(LOAN) 
OPTION
PUT/CALL 
+PROFIT 
-LOSS 
+/-
INT.PAID 
CASH
ON HAND 
NET WORTH
2
WHL
 500
 50
 55
   
 2,500
   
 75,000
 100,000
 25,000
27,500
   
 102,500
 102,500
 3
 T-BILL
 
 1,000
     
 30
 
 +.03%
 101,500
 102,500
       
 102,530
 102,530


Level Three
STRAIGHT INVESTMENT TRANSACTIONS &

TREASURY BILLS &
BUYING ON MARGIN

Up till now, all of your investments have been made for cash. If you wish, you can also buy stocks on margin. You are borrowing the money from your broker to buy the stocks.

There is a 50% margin requirement in the game. This means that the amount of the loan can never exceed 1/2 of the CURRENT market price of stocks.

Here's an example: Suppose you want to invest $5,000 in a stock selling at $50. a share. Under the margin rule, you can buy 200 shares of that stock instead of just 100 shares. Your $5,000. in cash controls a $10,000. investment. If the stock goes up five points, you earn a 20% profit instead of just 10% on your money. (The $5,000 is deducted from your cash on hand.)

If the stock goes down, a margin call will occur at the end of the quarter. You then must pay back the broker the difference between the amount of the loan and the current market price of the investment.

You bought 200 shares @ $50. = $10,000. ($5,000. was your money. You borrowed $5,000. from your broker.)

During the quarter, the stock fell to $40. a share. 200 shares @ $40. = $8,000.

Since you still owe your broker $5,000., your equity has, therefore, been reduced to $3,000.

Market value of stocks:   $8,000.
Broker loan:              -5,000.
                         --------
Your equity:              $3,000.

You must now send your broker $1,000. (by subtracting from your cash on hand) to cover the 50% margin requirement of the current market value of your stocks. This increases your equity to $4,000.

Market value of stocks:   $8,000.
Broker loan:              -4,000.
                         --------
Your equity:              $4,000.
$4,000. is = 50% of $8,000., and
the 50% margin requirement has
been restored.

To put it another way: a margin loan can be no greater than your current equity in the margined stocks. Your equity is equal to the current price of the stocks less the loan.

You must pay interest on the money you are borrowing, which is due every quarter. The rate is 1% over the prime rate affective at the end of the quarter. (Add 1% to the annual prime rate at the outer rim of the prime rate indicator. Use the inner quarterly figure to compute the interest.) Subtract this from your cash on hand.

1. To Buy An Investment On Margin, announce how many shares of stock you are buying on margin.

2. Enter half the amount into a channel of your computerized portfolio through the keyboard. Deduct the price you paid is cash from your cash on hand.

3. Place margin token (M side up) on the Share Section of the investment on the gameboard. The M signals an investment bought on margin.

4. At the end of the quarter, the computer will scroll each account in both portfolios.

5. If a loss has occurred in an account, the computer will stop in that position to make a margin call.

You must reduce your broker loan by deducting the amount of cash from your cash on hand to restore the 50%/50% balance between your equity in the stocks and your loan from your broker.

You may sell securities to accomplish this. Remember - your broker loan can be no more than 1/2 of the market price of the stock at the end of the quarter.

Push the joystick of the hand control to resume scrolling.

6. If a margin call cannot be met, an investor is bankrupt and out of the game.

7. Margined stocks may be sold to meet margin calls.

8. Interest on margin accounts must be paid at the end of each quarter and is deducted from net worth. Interest is computed from the Prime Rate indicated on the gamboard plus 1%.

(Prime Rate + 1%) = Quarterly
        4           Interest

Example: An investor has borrowed
$5,000. on margin. The prime rate
is 11%.

$10,000. x (11% + 1% = 12$) = 3%
                  4

The interest rate for the quarter
is 3%.

$150 (3% of $5,000.) is deducted
from the investor's net worth.

If you sell a margined stock, add the selling price to your cash on hand. Deduct the loss or add the profit to your net worth.

Important: You must pay back the broker loan plus interest at this time by deducting it from your cash on hand.

TAKE YOUR TIME AND WHEN YOU FELL COMFORTABLE WITH MARGIN TRADING, YOU ARE READY TO PROCEED TO THE FOURTH LEVEL.


Level Four
STRAIGHT INVESTMENT TRANSACTIONS &

TREASURY BILLS &
BUYING ON MARGIN &
STOCK OPTIONS

Ninety day options give the buyer the right - but not the obligation - to buy or sell securities at current prices at the beginning of the following quarter. Options offer the opportunity to realize a potentially large profit from a relatively small investment at a known risk. The most you can lose is the price you pay for the options.

Option trades are not entered into the computer.

Call Options
A call option gives you the right to buy a security at a predetermined price at the beginning of the following quarter. You are buying the right to "call away" a specific number of shares of the underlying security at a specified price at a predetermined time in the future. You are betting that the price of the security will rise.

Put Options
A put option is a contract for the right to sell a specific number of shares of a given security at a specified price at the beginning of the following quarter. You are betting that the price of the security will fall.

1. Options are available only at the beginning of each quarter.

The option pricing calculator shows the call price of one share of TEX at $35. is $5.75.

2. Use the Option Pricing Calculator to determine the price of the option.

Locate the current market value of the security as displayed by the computer on the vertical scale.

Locate the stock on the horizontal scale.

The price of an option for one share will be found at the point where the current share price and the stock intersect.

3. Options are only available in 100 share lots. Multiply the price of one put or call by the number of shares desired. Deduct this figure from you cash on hand.

4. Place an investment token in the proper PUT or CALL section. Record the option buy in the Investment Records.

5. Subtract the price of the option from your cash on hand.

6. Options are exercised at the end of the quarter.

Options are exercised only at the player's discretion. If the market has gone against you, your only loss is the price of the option itself.

7. If you exercise a call option, add the difference between the exercise price and the current market price times the number of shares to your cash on hand. Follow the same procedure for exercising a put option.

Example: An investor buys 100 shares of TEX on
call at $35. per share. The option price calculator
show the price of an option per share is $5.75
Call price per option:       $5.75
Amount of shares:               100
                             -----
Option price per 100 shares:  $575.

Price of stock per 100 shares at 35 per share
is $3,500. If stock rises to $45. per share,
price of stock per 100 shares at $45. is $4,500.
Profit of:                  $1,000
Less option price:             575
                            ------
Net profit of:                $425.

Add $425. to your cash on hand.


HANDBOOK OF COMMON STOCKS

ABC
American Broadcasting Companies, Inc.
operate in broadcasting, recorded music and publishing. It licenses, produces and acquires entertainment and sports programming for its network of more than 200 affiliated television stations. Five are company-owned. The radio division includes 1596 affiliated radio stations and 14 AM and FM stations which are owned by the company. They also own a number of magazines including Modern Photography, High Fidelity and Los Angeles.

AET
Aetna Life & Casualty Company
is the world's largest "multiple line" insurance firm. It markets virtually all forms of insurance including life, health, accident, auto, boat, plane, home, office, factory, etc. There were about 35 million Aetna policies in force at the end of 1979. Its primary business is insurance, but the company is also involved in real estate, land development, business financing and investment management.

BDG
Bandag, Inc.
manufactures pre-cured tread rubber, equipment and supplies for retreaded tires. It also distributes and rebuilds vehicle replacement parts primarily for heavy-duty vehicles.

GPT
General Portland, Inc.
is one of the largest U.S. manufacturers of Portland cement with a network of eight plants operating in Texas, Florida, Ohio, Tennessee, Kansas and California. The company also markets other construction materials and is involved in real estate development.

IBM
International Business Machines Corporation
is the largest manufacturer of data processing equipment in the world. It sells, rents and services its products. About half its earnings are derived from its foreign operations. IBM dominates the market for computers and business typewriters. They also make dictating machines, electronic cash registers, photocopiers and word processors. It is the largest non-union company in the world.

JWL
Jewel Companies, Inc.
operates more than 350 food stores throughout 17 states. Its Osco Drug Store division has 263 units. Other Jewel operations include White Hen Pantry convenience food stores and Brighams ice cream and candy shops. Its Mass Feeding Corp. concentrates on frozen meal preparation and serves many schools participating in the Midwest and Atlantic states.

LOK
Lockheed Corporation
is involved in the manufacture of the L-1011 TriStar, Jet Star II and the L-100 Hercules commercial aircraft. Its military planes include the C-140 Hercules, CP140 Aurora, S-3A Viking, P-3 Orion, C-141 Starlifter and the C-5 Galaxy. The company also manufactures Trident Ballistic missiles, special space systems, ocean going ships, air traffic control and radar systems, data handling devices, recorders and undersea petroleum systems. The U.S. Government is one of its largest customers.

MCD
McDonald's Corporation
develops licenses, leases and services a nationwide chain of self-service restaurants. At the end of 1979, there were 5,747 units operating in the U.S. and another 980 units spread throughout Canada, Japan, Australia, Central America and the Caribbean.

MER
Merrill Lynch & Co., Inc.
is the holding company of Merrill Lynch, Pierce, Fenner & Smith, Inc. It is the biggest factor in the business of brokering securities. Merrill Lynch also brokers commodity futures contracts and deals in corporate securities, municipal securities, U.S. Government agency obligations and investment banking. The company is also involved in real estate financing, investment counseling, economic counseling and life insurance. Merrill Lynch has 382 offices in the U.S. and other offices spread throughout 28 other countries.

MTC
Monsanto Company
is a leader in chemicals and synthetic fibers. Its lines include agricultural products, chemical intermediates, industrial chemicals, plastics, resins, textiles, pharmaceuticals, textile and paper chemicals, heavy chemicals and electronic controls.

MYG
The Maytag Company
is the third largest U.S. maker of home laundry appliances. Its products include electrically operated washing machines, automatic washers and both gas and electric dryers. It also makes coin-operated washing machines and dryers, dishwashers and food waste disposers.

NEE
New England Electric System
is the parent of an electric utility system which owns three retail electric operating companies, a wholesale generating company, a fuel company and a service company. It sells electricity to more than one million customers in Massachusetts, Rhode Island and New Hampshire.

NME
National Medical Enterprises, Inc.
own, operates and manages hospitals, nursing facilities and home health care agencies. It also offers a wide variety of services to other health care facilities in the U.S.

PAG
Proctor & Gamble Company
is the biggest U.S. manufacturer of soap and detergent and a leader in packaged shortening. It also makes household paper products and industrial pulp products. Important P&G brands include Ivory, Dash, Spic and Span and Tide cleaning compounds, Crisco and Fluffo shortening, Crest and Gleem toothpastes, Prell and Head and Shoulders Shampoos and Folger coffee. The company has a very large international operation.

SLZ
Jos. Schlitz Brewing Company
operates seven breweries producing Schiltz Beer, Old Milwaukee Beer, Schlitz Malt Liquor, Schlitz Light Beer and Erlanger Beer. The company is also involved in animal feeds and feed concentrates, the growing and processing of ducklings and producing California table wines.

SMC
A.O. Smith Corporation
is the world's largest maker of truck and automobile frames, the biggest U.S. producer of fiber glass reinforced plastic pipe and the major manufacturer of automated animal waste storage systems. Other A.O. Smith products include water heating equipment and electric motors for water systems, air-conditioning and refrigeration.

SOI
Standard Oil Company (Indiana)
is the sixth largest U.S. based oil company. It is heavily involved in crude oil and natural gas exploration, production, purchasing and transporting. It also markets petroleum products, chemicals, plastics and fertilizers. The company has other interests in minerals and real estate. It is active in more that 40 countries throughout the world.

SRS
Sears, Roebuck & Company
is the largest retail-mail order chain. It employs nearly 500,000 people - that's one out of every 200 working people in the United States. One out of every three families has a Sears credit card. The company also owns the Allstate Insurance Co. and Sear, Roebuck Acceptance Corp. Its Seraco group invests, develops and operates real estate and performs financial services.

TEX
Texas Instruments, Incorporated
develops, manufactures and sells products in the electrical and electronics industry to the industrial, consumer and government markets. Its component products include semiconductors as well as electrical and electronic controls. Digital products include mini-computers, data terminals, electronic calculators and watches. Government products include radar, infra-red surveillance systems as well as missile guidance and control systems. The company also produces metallurgical materials for automotive, appliances and telecommunications. In addition, it collects and electronically processes seismic data for petroleum exploration.

TOY
Toyota Motor
is the largest automobile manufacturer in Japan and has 25 overseas plants. They export about 40% of their output and are advancing into the housing industry.

TWA
Trans World Corporation
is the parent company of Trans World Airlines which currently flies to and from 42 cities in the continental United States and 19 cities in Europe, Africa and the Middle East. The corporation also owns Hilton International (hotels), Canteen Corporation (food service), Spartan Food Systems and Century 21 Real Estate Corp.

USH
U.S. Home Corporation
has 41 divisions which maintain 234 communities in 15 states. It is the leading on-site manufacturer of single family homes in the country. The corporation produces detached homes, townhouses and low-rise condominiums. It also sells lumber, millwork and concrete.

USS
United States Steel Corporation
is the largest American steel company and accounted for almost 23% of the entire industry's output in 1979. It also owns or leases coal, limestone and iron ore properties.

WHL
Western Holdings Limited
is the operator of a large gold mine in the Orange Free State province of South Africa. In 1980, it produces close to a million ounces.

WFB
Wells Fargo & Company
is a holding company. Its principal subsidiary is Wells Fargo Bank, N.A. which has 374 offices in California. It offers a broad range of services including traditional deposits and loans, real estate loans as well as trust and investment services.

WOW
Wildcat Oil Western
represents companies engaged in natural resource exploration and production. It operates in ocean transportation, crude oil, finished petroleum marketing and real estate. Wildcat Oil Western has facilities in Indonesia, the North Sea, Egypt, Canada and the U.S.

XON
Exxon Corporation
is the biggest oil company in the world. About one-half of Exxon's daily production comes from the Middle East and Africa. Interests are also held in deposits on the North Slope, the North Sea and the Baltimore Canyon. It is also heavily involved in chemicals.

If you want to learn more about making money with money, here are three excellent sources:
HOW TO BUY STOCKS. Louis Engel in collaboration with Peter Wykoff. Bantam.
THE STOCK MARKET. J.H. Lorie and M.T. Hamilton, Richard B. Irwin, Inc.
INVESTMENTS. William R. Sharpe. Prentice-Hall, Inc.

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