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Apr 2808:00 AM PDT
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10 Apr 2025, 04:04
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Dropdown 1: Company C
Dropdown 2: +$10
A day trader bought 50 shares of one of the companies shown in the graph, at the stock prices (in dollars) indicated in the graph above. He purchased the shares at 9:00, when the market opened, and sold all 50 shares at 13:00.
Select from each drop-down menu the option that creates the most accurate statement, given the information provided.
If the trader made a total profit of $250 on that day, he bought shares of , which at the market close at 16:00 had an overall price change of approximately .
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Official Answer
Dropdown 1: Company C
Dropdown 2: +$10
10 Apr 2025, 04:04
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Official Solution:
Drop-down 1:
We are told that the day trader made a total profit of $250 from trading 50 shares of a particular company.
Since profit = (selling price – buying price) × number of shares, the stock price must have increased by $250 ÷ 50 = $5 between 9:00 and 13:00.
We need to identify the company whose stock price increased by $5 during that time period. Note that the graph shows stock prices beyond 13:00, but only the price change from 9:00 to 13:00 is relevant to the trader’s profit.
From 9:00 to 13:00, the following price changes occurred. We should check all companies to be certain. No calculator is needed — we can quickly note the differences and identify which company had a price increase of $5.
Company A: 55 → 65, a change of +10
Company B: 20 → 30, a change of +10
Company C: 105 → 110, a change of +5 — Correct
Company D: 65 → 50, a change of –15
Drop-down 2:
At the market close at 16:00, Company C had an overall price change of +$10, from $105 to $115.
Correct answer:
Dropdown 1: "Company C"
Dropdown 2: "+$10"
Bunuel
Drop-down 1:
We are told that the day trader made a total profit of $250 from trading 50 shares of a particular company.
Since profit = (selling price – buying price) × number of shares, the stock price must have increased by $250 ÷ 50 = $5 between 9:00 and 13:00.
We need to identify the company whose stock price increased by $5 during that time period. Note that the graph shows stock prices beyond 13:00, but only the price change from 9:00 to 13:00 is relevant to the trader’s profit.
From 9:00 to 13:00, the following price changes occurred. We should check all companies to be certain. No calculator is needed — we can quickly note the differences and identify which company had a price increase of $5.
Company A: 55 → 65, a change of +10
Company B: 20 → 30, a change of +10
Company C: 105 → 110, a change of +5 — Correct
Company D: 65 → 50, a change of –15
Drop-down 2:
At the market close at 16:00, Company C had an overall price change of +$10, from $105 to $115.
Correct answer:
Dropdown 1: "Company C"
Dropdown 2: "+$10"
