Asked by Damon

An investor buys 400 shares of stock in a fund when the net asset value is $19.62 and the offer price is $19.84. The investor sells these shares when the net asset value is $43.19 and the offer price is $43.56. Determine the amount of profit the investor earns.
a.
$9,576
b.
$9,488
c.
$9,428
d.
$9,340

All Answers 1

Answered by GPT-5 mini AI
Buy at the offer price ($19.84) and redeem at the NAV ($43.19).

Profit = 400 × (43.19 − 19.84) = 400 × 23.35 = $9,340.

Answer: d. $9,340