an investor buys 400 shares of stock in a fund when the net asset value is $19.62 and the offer price is…

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.\na. $9,576\nb. $9,488\nc. $9,428\nd. $9,340\nplease select the best answer from the choices provided\na\nb\nc\nd

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.\na. $9,576\nb. $9,488\nc. $9,428\nd. $9,340\nplease select the best answer from the choices provided\na\nb\nc\nd

Answer

Explanation:

Step1: Calculate the total cost of buying

The investor buys 400 shares at an offer - price of $19.84 per share. So the total cost of buying is $400\times19.84 = 7936$.

Step2: Calculate the total amount received from selling

The investor sells 400 shares at an offer - price of $43.56 per share. So the total amount received from selling is $400\times43.56=17424$.

Step3: Calculate the profit

Profit = Total amount received from selling - Total cost of buying. So the profit is $17424 - 7936=9488$.

Answer:

B. $9,488