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11 May, 20:17

You own 1200 shares of Newstar Financial stock, currently trading for $57 per share. You are offered a deal where you can exchange these stocks for 1100 shares of Amback Financial Group stock, currently trading at $60 per share. What is the value of this trade, if you choose to make it?

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  1. 11 May, 20:36
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    -$2,400

    Explanation:

    1,200 shares price per share is $57.

    So, the total amount:

    = $57 * 1,200

    = $68,400

    Value of trade if offer is accepted = $60 per share

    Total share issued in offer is 1,100

    Therefore total value = 1,100 * $60 per share

    = $66,000

    So, the net value of trade:

    = $66,000 - $68,400

    = - $2,400
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