To solve this problem, we need to determine the gain or loss after purchasing and selling 25 shares of Zycodec stock. Let's go step-by-step through the calculations:
1. Identify the variables:
- Number of shares purchased: 25
- Lowest price of the year: [tex]$29.39
- Closing price at which the stock is sold: $[/tex]34.95
2. Calculate the cost price:
The cost price is the amount paid to purchase the shares at the lowest price of the year.
[tex]\[ \text{Cost Price} = \text{Number of Shares} \times \text{Lowest Price} \][/tex]
[tex]\[ \text{Cost Price} = 25 \times 29.39 \][/tex]
[tex]\[ \text{Cost Price} = 734.75 \][/tex]
3. Calculate the selling price:
The selling price is the amount received from selling the shares at the current closing price.
[tex]\[ \text{Selling Price} = \text{Number of Shares} \times \text{Closing Price} \][/tex]
[tex]\[ \text{Selling Price} = 25 \times 34.95 \][/tex]
[tex]\[ \text{Selling Price} = 873.75 \][/tex]
4. Determine the gain or loss:
The gain or loss is the difference between the selling price and the cost price.
[tex]\[ \text{Gain or Loss} = \text{Selling Price} - \text{Cost Price} \][/tex]
[tex]\[ \text{Gain or Loss} = 873.75 - 734.75 \][/tex]
[tex]\[ \text{Gain or Loss} = 139.00 \][/tex]
Given these calculations, the stockholder made a gain.
Therefore, the correct option is:
The gain is $139.00.
