Let's walk through the detailed solution step-by-step:
1. Identify the relevant data:
- Purchased shares: 25
- Purchase price per share (lowest price of the year for Zycodec): \[tex]$29.39
- Current closing price per share: \$[/tex]34.95
2. Calculate the total amount spent on purchasing the shares:
- Formula: Total spent = Price per share Number of shares
- Total spent = \[tex]$29.39 25
- Total spent = \$[/tex]734.75
3. Calculate the total amount received if the shares are sold at the current closing price:
- Formula: Total sold = Closing price per share Number of shares
- Total sold = \[tex]$34.95 25
- Total sold = \$[/tex]873.75
4. Calculate the gain or loss:
- Formula: Gain or Loss = Total sold - Total spent
- Gain or Loss = \[tex]$873.75 - \$[/tex]734.75
- Gain or Loss = \[tex]$139.00
5. Determine whether it is a gain or a loss:
- Since the total amount received from selling the shares (\$[/tex]873.75) is greater than the total amount spent on purchasing the shares (\[tex]$734.75), the stockholder made a gain.
Therefore, the correct answer is:
The gain is \$[/tex]139.00.
