At the Time of Elijah's Death, He Owned Stock in Grey

question 55

Multiple Choice

At the time of Elijah's death, he owned stock in Grey Corporation. The stock is traded on a local exchange with the most recent selling prices as follows.
Per Share Price
Four trading days prior to Elijah's death $120
Six trading days after Elijah's death 100
Presuming no alternate valuation date election, Elijah's gross estate should include a per share value of:

• A) $108.
• B) $110.
• C) $112.
• D) $120.
• E) None of the above.

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Definitions:

Market-Neutral

Market-neutral is an investment strategy or portfolio designed to neutralize certain market risks by taking offsetting positions, aiming to achieve returns largely independent of the overall market movement.

Risky

Involving exposure to danger or financial loss probabilities.

Financial Intermediary

An intermediary that buys securities with funds that it obtains by issuing its own securities. An example is a common stock mutual fundthat buys common stocks with funds obtained by issuingshares in the mutual fund.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and mutual funds.