Shares of a closed-end fund are trading at a 4% premium over NAV. IF NAV is Rs.10 per share, what is the current market price of the shares?

Rs. 9.96

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Rs. 10.04

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Rs. 10.40

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Rs. 14.00

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Rs. 9.60

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Solution

The correct option is C Rs. 10.40
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The amount on share was payable as under :

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On Application	Rs 3 per share	Rs 3 per share
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On First Call	Rs 4 per share	Rs 3 per share