Question

Three weeks ago John bought stock at 49 1/4; today the stock is valued at 49 7/8. We could say the stock is performing at which of the following?

A. Below par
B. Par equality
C. On par
D. Above par

Answer 1

The best answer to the question that is being presented above would be letter D above par. The stock is performing at above par because there is an increase in the value of the stock by twenty nine percent (29%). 

Answer 2

The correct option is D.

Explanation:

John bought stock at
`49(1)/(4)`; today the stock is valued at
`49(7)/(8)`.

`49(1)/(4)=49+(1)/(4)`

`49(1)/(4)=49+0.25`

`49(1)/(4)=49.25`

The value of stock at the time of purchasing is 49.25.

`49(7)/(8)=49+(7)/(8)`

`49(7)/(8)=49+0.875`

`49(7)/(8)=49.875`

The value of stock at current time is 49.875.

`49.875-49.25=0.625`

The value of stock increased by 0.625.

Since the value of stock increases, therefore the correct option is D, i.e., Above par.