$7.$ Late Trading

On August $31,$ a mutual fund has the following assets and prices at $4$:$00$pm$.$

$3$

Stock Shares owned Price

$11,000$ $$2$

$25,000$ $$4$

$31,000$ $$5$

$410,000$ $$1$

$53,000$ $$3$

Cash N$/$A $4500$

Liabilities $0$

Suppose at $6$:$30$pm$,$ Stock $3$ announces an increase in earnings, and the price of stock $3$ jumps to

$$8$ in after$-$market trading. If the fund $($illegally$)$ allows investors to buy at the current NAV

$($NAV at trading hours on August $31),$ how many shares will $$10,000$ buy? What is the gain for

the investors to such illegal trades? Assume $1,000$ shares are outstanding before the trades.