Series 7 - General Securities Representative Exam

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Premium to NAV describes

When shares of an open-end fund are trading at a higher price than the fund's NAV
A
When shares of a closed end fund are trading at a higher price than the fund's NAV
B
When shares of a closed end fund are trading at a low price than the fund's NAV
C
When shares of an open-end fund are lower at a higher price than the fund's NAV
D

Explanations

The key word here is premium. Closed end funds trade on the open market and rarely trade at NAV. Mutual funds only trade at the NAV (open end funds)

Pricing