Final answer:
The broker's gross profit for selling 120 shares of stock, which were bought at $21.45 per share and sold at $26.40 per share, is $594 before accounting for commissions and taxes.
Step-by-step explanation:
The question asks us to calculate the gross profit a broker made from buying and selling stock. To do this, one would need to determine the difference in the buying and selling prices of the stock for each share and then multiply this by the total number of shares sold.
In this case, the broker bought stock at $21.45 per share and sold it at $26.40 per share. Assuming the broker sold 120 shares, the calculation for gross profit would be:
- Difference per share: $26.40 - $21.45 = $4.95
- Total gross profit: $4.95 × 120 shares = $594
Therefore, the gross profit, before commissions and taxes, on 120 shares sold is $594 (Option C).