Question 3 • ****Spring 2026 Financial Math - MA2007 MQS21QXV
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.
Answer
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.
Explanation
Mark’s purchase cost is 250 × $25.30 = $6,325, using the fund’s offer price. Selling today for $7,300 would give him a profit of $7,300 − $6,325 = $975. Since $975 is less than his $1,000 goal, he should not sell yet; choice b is correct.
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