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A trader bought 100 shares at $20 each and sold them at $25 each. What is the av

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Question: A trader bought 100 shares at $20 each and sold them at $25 each. What is the average profit per share?

Options:

  1. $4
  2. $5
  3. $6
  4. $7

Correct Answer: $5

Solution: 

Profit per share = Selling Price - Cost Price = 25 - 20 = $5. Average profit per share = $5.

A trader bought 100 shares at $20 each and sold them at $25 each. What is the av

Practice Questions

Q1
A trader bought 100 shares at $20 each and sold them at $25 each. What is the average profit per share?
  1. $4
  2. $5
  3. $6
  4. $7

Questions & Step-by-Step Solutions

A trader bought 100 shares at $20 each and sold them at $25 each. What is the average profit per share?
  • Step 1: Identify the cost price of each share. The cost price is $20.
  • Step 2: Identify the selling price of each share. The selling price is $25.
  • Step 3: Calculate the profit per share by subtracting the cost price from the selling price. Profit per share = Selling Price - Cost Price = 25 - 20.
  • Step 4: Perform the calculation: 25 - 20 = $5.
  • Step 5: The average profit per share is $5.
  • Profit Calculation – Understanding how to calculate profit by subtracting the cost price from the selling price.
  • Average Profit – Determining the average profit per share based on total profit divided by the number of shares.
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