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

question 9

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.If at expiration Peppy is selling for $47.00,what is Sarah's dollar gain or loss?

• A) $25 loss
• B) $250 loss
• C) $25 gain
• D) $250 gain
• E) None of the above

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Definitions:

Resilience

The ability to recover quickly from difficulties; toughness or the capacity to bounce back from adversity.

Adverse Effects

Unintended, negative reactions or responses to a drug, treatment, or intervention, which can vary in severity from mild to life-threatening.

Epigenesis

A developmental process by which organisms grow and develop, emphasizing the way complex structures evolve from simple ones after conception.

Early Experience

Refers to the events, interactions, and learning that occur early in life, which can significantly influence an individual's development and future behavior.