Exhibit 20.5 Use the Information Below for the Following Problem(S)

question 1

Multiple Choice

Exhibit 20.5
Use the Information Below for the Following Problem(S)
Sarah Kling bought a 6-month Peppy Cola put option with an exercise price of $55 for a premium of $8.25 when Peppy was selling for $48.00 per share.
-Refer to Exhibit 20.5.What is Sarah's annualized gain/loss?

• A) 11.51% gain
• B) 115.15% gain
• C) 11.51% loss
• D) 115.15% loss
• E) None of the above

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Definitions:

Anti-Lynching Laws

Legislation intended to prevent lynching, a form of violent, extrajudicial punishment typically motivated by racial prejudice, though historically such laws have been difficult to enforce.

CIO

Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.

Voting Rights

Legal entitlements that allow individuals to participate in the election of representatives and in decision making through referendums.

Mexican-Americans

People of Mexican ancestry residing in the United States, who have contributed significantly to American culture, economy, and society, while also facing challenges related to identity and integration.