Answer:
$15 profit would Caroline make .
Option (B) is correct .
Step-by-step explanation:
As given
[tex]Caroline\ bought\ 20\ shares\ of\ stock\ at\ 10 \frac{1}{2}.[/tex]
i.e
[tex]Caroline\ bought\ 20\ shares\ of\ stock\ at\ \frac{21}{2}.[/tex]
[tex]After\ 10\ months\ the\ value\ of\ the\ stocks\ was\ 11 \frac{1}{4}.[/tex]
i.e
[tex]After\ 10\ months\ the\ value\ of\ the\ stocks\ was\ \frac{45}{4}.[/tex]
Thus
Profit = (Cost of the 20 stock after 10 month - Cost of the 20 stock before 10 month ) × Total number of shares .
[tex]Profit = (\frac{45}{4} - \frac{21}{2})\times 20[/tex]
L.C.M of (4,2) = 4
[tex]Profit = \frac{45 - 21\times 2}{4}\times 20[/tex]
[tex]Profit = \frac{45 - 42}{4}\times 20[/tex]
[tex]Profit = \frac{3}{4}\times 20[/tex]
Profit = 3 × 5
Profit = $15
Therefore the $15 profit would Caroline make .
Option (B) is correct .
