Question

Three weeks ago John bought stock at 491/4; today the stock is valued at 497/8. We could say the stock is performing at which of the following?
A. Below par
B. Above par
C. On par
D. Par equality

Answer 1

The Correct Answer Is B- Above Par

Answer 2

Rate at which John bought the stocks 3 weeks ago = 491/4
Rate at which John sold the stock = 497/8
Amount of loss incurred by John = (497/8) - (491/4)
                                                    = (497 - 982)/8
                                                    = - (485/8)
From the above deduction it can be easily said that the stock is performing below par. The correct option among all the options that are given in the question is option "A".