a. $4 gain
b. $6 loss
c. $2 loss
d. $1 gain
e. $0
b. $6 loss
c. $2 loss
d. $1 gain
e. $0
Answer:
d.$1 gain
Explanation:
Calculation for what is the gain or loss per share to the pension fund
Gain per share = Stock Purchased- Exercise price + Premium per share
Let plug in the formula
Gain per share = $53-$50 + $4
Gain per share=$53-$54
Gain per share= $1
Therefore the gain or loss per share to the pension fund will be $1 gain
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