The price at which an open-end investment fund stands ready to redeem existing shares is the
A)strike price.
B)face value.
C)book value.
D)net asset value.

Question

Quizplus · Accepted Answer

Net asset value (NAV) is the valuation at which an open-end investment fund stands ready to redeem existing shares. It is calculated by dividing the total value of the fund's assets minus liabilities by the number of outstanding shares. This reflects the fund's per-share value, and investors buy or sell shares at the NAV price.

The Price at Which an Open-End Investment Fund Stands Ready