Problem Solving

My answer is (E). OA is (C). Please help to explain. Thanks.

Let C1 and C2 be the respective cost prices of the first and second share.

Given that 120%(C1)=96, so C1 = 80
Also 80%(C2) = 96 , so C2 = 120.

Hence both the stocks are purchased for 200$ and both of them are sold for 192$. So a loss of 8$

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You can also remember a small note here...

When two articles are sold at the same price and if the gain % (say x%) on one article is same as the loss % (x%)on the other article, then overall there always will be a loss and the overall loos% = (x^2)/100 %.

Coming this problem, since the gain % = loss % = 20%, the overall loss = 4%.

So 96%(C1+C2) = 192.
Hence C1+C2 = 200.

Thus there will be a loss of 8$ in the entire transaction.

Another small note.....

When two articles are purchased at the same price and if the gain % (say x%) from the sale of one article is same as the loss % (x%) incurred from the sale of the other article, then overall there will neither profit nor loss