Solve the Problem $\$ 24 \frac { 1 } { 2 }$

question 164

Multiple Choice

Solve the problem.
-Stock in a company is selling for $\$ 24 \frac { 1 } { 2 }$ per share. If someone purchases $\$ 1176$ worth of stock in this company, how many shares did they get?

• A) 48 shares
• B) 1176 shares
• C) \(1212 \frac { 1 } { 2 }\) shares
• D) 2352 shares

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Definitions:

Ordering Costs

Expenses incurred in placing and receiving orders for goods, including transportation, handling, and clerical costs.

Option Contract

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified timeframe.

Futures Contract

A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date.

Forward Contract

A legally binding agreement between two parties calling for the sale of an asset or product in the future at a price agreed upon today.