CERTYNEX IFRS ACADEMY

A company holds 120,000 shares of an issuer listed in an active market. The closing price is 18.50 per share and the average daily trading volume is 15,000 shares. What is the fair value of the position?

2,109,000, after a 5% blockage discount to reflect the size of the position.

277,500, corresponding to the quantity the market absorbs in one session.

2,331,000, after a 5% premium for holding a large block.

2,220,000, that is the quoted price multiplied by the quantity held.