1. On January 1, the shares and prices for a mutual fund at 4:00 PM. are as follows:

Stock 3 announces record earnings, and the price of stock 3 jumps to $32.44 in after-market trading. If the fund (illegally) allows investors to buy at the current NAV, how many shares will $25,000 buy? If the fund waits until the price adjusts, how many shares can be purchased? What is the gain to such illegal trades? Assume 5000 shares are outstanding.

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Stock Shares owned Price 12346 1000 $1.92 5000 $51.18 2800 $29.08 9200 $67.19 3000 $4.51 Cash n.. $5353.40