Brent, who died on January 10, owned 10 shares of Potts Corporation stock. The closest trading dates to January 10 are January 8 (two working days before the date of death)and January 11 (one working day after the date of death). On January 8, the stock traded at a high of 101 and a low of 97, while on January 11, the high was 90 and the low was 86. The date-of-death per-share value is
A)$99.00.
B)$95.33.
C)$93.50.
D)$91.67.

Question

Quizplus · Accepted Answer

The date-of-death per-share value is calculated by averaging the high and low prices on the closest trading dates before and after the date of death. For January 8, the average is (101 + 97) / 2 = 99. For January 11, the average is (90 + 86) / 2 = 88. The date-of-death value is the average of these two averages: (99 + 88) / 2 = 93.5. However, due to a calculation error in the provided options, the correct mathematical answer (93.5) is not listed. The closest provided option to the correct calculation is D) $91.67, which appears to be a mistake in the question's formulation.

Brent, Who Died on January 10, Owned 10 Shares of Potts