To determine the gain or loss from selling the Zycodec stock, follow these steps:
1. Determine the purchase price:
The stock was purchased at its lowest price of the year:
[tex]\[
\text{Purchase price per share} = \$29.39
\][/tex]
2. Determine the number of shares purchased:
The stockholder purchased 25 shares.
3. Calculate the total purchase price:
Multiply the purchase price per share by the number of shares:
[tex]\[
\text{Total purchase price} = \$29.39 \times 25 = \$734.75
\][/tex]
4. Determine the selling price:
The stock is sold at the current closing price:
[tex]\[
\text{Selling price per share} = \$34.95
\][/tex]
5. Calculate the total selling price:
Multiply the selling price per share by the number of shares:
[tex]\[
\text{Total selling price} = \$34.95 \times 25 = \$873.75
\][/tex]
6. Calculate the gain or loss:
Subtract the total purchase price from the total selling price:
[tex]\[
\text{Gain or Loss} = \$873.75 - \$734.75 = \$139.00
\][/tex]
Since the result is positive, it indicates a gain. Therefore, the correct answer is:
[tex]\[
\text{The gain is } \$139.00
\][/tex]
