You Purchase a Closed-End Fund at Its Initial Public Offering

Multiple Choice

You purchase a closed-end fund at its initial public offering. The initial offering price is $30 per share. The fund promoter receives a 7 percent fee from the offering, and the fund sells at a 9 percent discount to NAV the day after the offering. What is the value of your investment per share?

A) $25.39
B) $27.90
C) $26.95
D) $27.30
E) $26.34