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.
E)net worth.

Question

Quizplus · Accepted Answer

The price at which an open-end investment fund redeems existing shares is the net asset value (NAV). This is the value of the fund's assets minus its liabilities, divided by the number of outstanding shares. The NAV is calculated at the end of each trading day and is used to determine the price at which investors can buy or sell shares in the fund. Therefore, option D, net asset value, is the correct answer.

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