The Net Asset Value (NAV) is the market value of the assets of the fund minus its liabilities divided by the number of shares in the fund.

$\text{NAV} = \frac{\text{Market value of assets} - \text{Liabilities}}{\text{No. of shares outstanding}}$

$\text{NAV} = \frac{1,000,000 - 300,000}{500,000} = \frac{700,000}{500,000} = 1.4$

Therefore, the fund's NAV is $1.4, which corresponds to option B.