A Closed-End Fund Has Total Assets of $379 Million and Liabilities

question 60

Multiple Choice

A closed-end fund has total assets of $379 million and liabilities of $640,000. There are 36 million shares outstanding. What is the premium or discount if the shares are currently selling for $9.85 each?

• A)7.46% discount
• B)6.28% discount
• C)6.94% discount
• D)6.80% premium
• E)7.46% premium

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Definitions:

Isobutylene

A volatile, flammable, and colorless gas that is a simple alkene with the chemical formula C4H8, used in the production of various polymers.

Polyisobutylene

A synthetic rubber, or elastomer, made from the polymerization of isobutylene, used in a variety of applications including sealants and adhesives.

Cyclic Product

A chemical compound that forms a ring structure during a chemical reaction.

Ring Closing Metathesis

A form of metathesis reaction that forms cyclic compounds by the rearrangement of carbon-carbon double bonds.