Question

A share of stock in the Lofty Cheese Company is quoted at 25 1/4. Suppose you hold 30 shares of that stock, which you bought at 20 1/4. If you sell your stock at 25 1/4, which one of the following statements would be true?

A. You'll make a profit of $15.
B. You'll suffer a loss of $150.
C. You'll make a profit of $150.
D. You'll suffer a loss of $15.

Answer 1

C. You'll make a profit of $150.

Explanation:

20 1/4 =$81/4 shares of Lofty Cheese Company bought. 25 1/4=$101/4 each shares of Lofty Cheese Company sold. 101/4 - 81/4 Amount of profit made per share of Lofty Cheese Company. =20/4dollars=$5 30 * 5 profit made for 30 shares of Lofty Cheese [ Company. = $150 you'll make a profit of $150 ]

Answer 2

I believe the correct answer from the choices listed above is option C. You'll make a profit of $150. For every, stock you obtain a profit 25 1/4 - 20 1/4 = $5. You have in stock 30 shares of that product thus the total profit would 30 times of the $5.

Profit = 30 ($5) = $150