Answer:
A. Below par.
Step-by-step explanation:
We have been given that 3 weeks ago John bought stock at 491/4; today the stock is valued at 497/8.
Let us find change in stock's value by subtracting present value from the value of stock 3 weeks ago.
\(\text{Change in stock's value}=\frac{497}{8}-\frac{491}{4}\)
Let us have a common denominator.
\(\text{Change in stock's value}=\frac{497}{8}-\frac{491\times 2}{4\times 2}\)
\(\text{Change in stock's value}=\frac{497}{8}-\frac{982}{8}\)
\(\text{Change in stock's value}=\frac{497-982}{8}\)
\(\text{Change in stock's value}=\frac{-485}{8}\)
We can see that stock's value has decreased, therefore, the stock is performing below par and option A is the correct choice.
