What net asset value per unit (NAVPU) will Ted receive for his redemption order placed on Tuesday at 7:30 p.m. EST/EDT?

To determine the net asset value per unit (NAVPU) that Ted will receive upon placing his redemption order after market hours, it's important to understand the timing of NAV calculations and when orders are executed in relation to market closing.

Typically, mutual funds calculate their NAV at the end of the trading day, which is often 4:00 p.m. EST on weekdays. If an investor submits a redemption request after the market has closed, the order is processed at the NAV calculated for the next trading day. In this case, Ted placed his order at 7:30 p.m. on a Tuesday, which is well after market hours.

The NAVPU of $10.34 indicates that this is the value calculated after the market closed on Tuesday, and it represents the price per unit for Wednesday's transactions. Therefore, since Ted's order was placed after the cut-off time for that day's NAV, he will receive Wednesday's NAVPU for his redemption, which is why the correct answer reflects that specific value.

Understanding the NAV computation cycle is critical in determining the precise value Ted will obtain for his investment, reinforcing the importance of timing in order placements within mutual fund transactions.