Let's break down the problem step by step to determine the correct statement from the given options.
1. Sell Price of the Stock:
The quoted selling price of a share of stock in the Lofty Cheese Company is [tex]\( 25 \frac{1}{4} \)[/tex].
Converting this to a decimal, we get:
[tex]\[
25 + \frac{1}{4} = 25 + 0.25 = 25.25 \text{ dollars}
\][/tex]
2. Buy Price of the Stock:
The price you paid when buying the shares was [tex]\( 20 \frac{1}{4} \)[/tex].
Converting this to a decimal, we get:
[tex]\[
20 + \frac{1}{4} = 20 + 0.25 = 20.25 \text{ dollars}
\][/tex]
3. Number of Shares:
You hold [tex]\( 30 \)[/tex] shares of the stock.
4. Total Sell Amount:
To find the total sell amount, multiply the number of shares by the selling price per share:
[tex]\[
\text{Total Sell Amount} = 30 \times 25.25 = 757.5 \text{ dollars}
\][/tex]
5. Total Buy Amount:
To find the total buy amount, multiply the number of shares by the buying price per share:
[tex]\[
\text{Total Buy Amount} = 30 \times 20.25 = 607.5 \text{ dollars}
\][/tex]
6. Profit or Loss Calculation:
To determine whether you made a profit or suffered a loss, subtract the total buy amount from the total sell amount:
[tex]\[
\text{Profit or Loss} = 757.5 - 607.5 = 150 \text{ dollars}
\][/tex]
Since the result is positive, it indicates a profit of \[tex]$150.
So, the correct statement is:
D) You'll make a profit of \$[/tex]150.
