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A summary of two stocks is shown.
\begin{tabular}{|l|l|l|l|l|l|l|}
\hline 52W high & 52W low & Name of Stock & Symbol & High & Low & Close \\
\hline 37.18 & 29.39 & Zycodec & ZYO & 39.06 & 32.73 & 34.95 \\
\hline 11.76 & 7.89 & Unix Co & UNX & 16.12 & 12.11 & 15.78 \\
\hline
\end{tabular}

Last year, a stockholder purchased 25 shares of Zycodec at its lowest price of the year. What is the gain or loss if the stock is sold at the current closing price?

A. The gain is [tex]$\$[/tex]55.75[tex]$.
B. The loss is $[/tex]\[tex]$55.75$[/tex].
C. The gain is [tex]$\$[/tex]139.00[tex]$.
D. The loss is $[/tex]\[tex]$139.00$[/tex].


Sagot :

To determine the gain or loss when selling the Zycodec stock at its current closing price, let's break down the problem step-by-step:

1. Determine the number of shares purchased:
- The stockholder purchased 25 shares of Zycodec.

2. Identify the purchase price per share (lowest price of the year):
- The lowest price for Zycodec over the past year was [tex]$29.39 per share. 3. Calculate the initial investment: - The initial investment is found by multiplying the number of shares by the purchase price per share. \[ \text{Initial Investment} = 25 \text{ shares} \times \$[/tex]29.39/\text{share} = \[tex]$734.75 \] 4. Identify the current closing price per share: - The current closing price per share for Zycodec is $[/tex]34.95.

5. Calculate the current value of the shares:
- The current value is found by multiplying the number of shares by the current closing price per share.
[tex]\[ \text{Current Value} = 25 \text{ shares} \times \$34.95/\text{share} = \$873.75 \][/tex]

6. Determine the gain or loss:
- The gain or loss is calculated by subtracting the initial investment from the current value of the shares.
[tex]\[ \text{Gain or Loss} = \$873.75 - \$734.75 = \$139.00 \][/tex]

Since the result is positive, it indicates a gain. Therefore, the stockholder made a gain of [tex]$139.00. Thus, the correct answer is: - The gain is \$[/tex]139.00.
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