When the Offer Price and the NAV of a Mutual

question 58

Multiple Choice

When the offer price and the NAV of a mutual fund are equal it is an indication that

• A) The fund's assets are in equilibrium.
• B) The fund is trading at par.
• C) It is strictly a coincidence.
• D) The fund has no initial fee.
• E) The fund is backloaded.

---

Definitions:

Consideration

Consideration in legal terms refers to the value, which could be a benefit or a sacrifice, that parties exchange in a contractual agreement, essential for the contract's validity.

Hybrid Contract

An agreement that encompasses elements of both goods and services within the same transaction.

UCC Article 2

Part of the Uniform Commercial Code that governs the sale of goods in the United States, providing a framework for transactions and contracts.

CISG

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is an international treaty that establishes a uniform framework for the international sale of goods, providing a set of rules governing the formation of contracts for the sale of goods between parties based in different countries.