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.
