To determine whether you made a profit or suffered a loss, and how much it amounts to, we need to calculate the total cost of purchasing the shares and the total selling price. Let's walk through the steps:
1. Determine the buying price per share:
- The shares were bought at [tex]$31 \frac{1}{2}$[/tex], which is [tex]\(31.5\)[/tex] dollars per share.
2. Determine the selling price per share:
- The shares were sold at [tex]$35 \frac{1}{4}$[/tex], which is [tex]\(35.25\)[/tex] dollars per share.
3. Calculate the total cost of purchasing the shares:
- You hold 20 shares.
- The total cost price is [tex]\( 20 \, \text{shares} \times 31.5 \, \text{dollars/share} \)[/tex].
[tex]\[
\text{Total cost} = 20 \times 31.5 = 630 \, \text{dollars}
\][/tex]
4. Calculate the total selling price:
- You sold 20 shares at [tex]\(35.25\)[/tex] dollars per share.
- The total selling price is [tex]\( 20 \, \text{shares} \times 35.25 \, \text{dollars/share} \)[/tex].
[tex]\[
\text{Total selling price} = 20 \times 35.25 = 705 \, \text{dollars}
\][/tex]
5. Calculate the profit or loss:
- Subtract the total cost from the total selling price.
[tex]\[
\text{Profit} = \text{Total selling price} - \text{Total cost} = 705 - 630 = 75 \, \text{dollars}
\][/tex]
Since the result is positive, you made a profit. Thus, the correct answer is:
B) You made a profit of $75.00.
