Question

Mark buys 250 shares of stock in a fund with a net asset value of $25.17 and an offer price of $25.30. mark wants to sell all of his shares when he can profit $1,000. if mark sells his shares today, he would have proceeds of $7,300. determine if mark should sell his shares today and why.
a. mark should not sell his shares because he would have a loss rather than a profit.
b. mark should not sell his shares because he would not have as much profit as he’d like.
c. mark should sell his shares because he will make the profit he wants to make.
d. there is not enough information given to know if mark should sell his shares or not.

Answer 1

Your answer is c :)))

Answer 2

By dividing the total proceeds he will gain from the sales, that is,
                                $7,300 / 250 = $29.2
we will deduce that each of the shares of stock is priced at $29.2. This value is larger compared to the offer price of $25.30 that he initially has. Hence, he should sell his shares and the answer is letter C.