An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Assume that if you buy an ETF you can sell the individual stocks in the market, and assume if you own the three stocks you can sell them as an ETF in the market. Consider an ETF for which each share of the ETF represents a portfolio of two shares of International Business Machines (IBM), three shares of Merck (MRK), and three shares of Citigroup Inc. (C). Assume the current market prices of each individual stock are below:

Stock Current Price per Share

IBM $121.57

MRK $36.59

C $3.15