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

question 92

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) 60.60% gain
• B) 6.06% loss
• C) 60.60% loss
• D) 6.06% gain
• E) None of the above

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Definitions:

Interpersonal Conflict

A situation where two or more individuals have opposing interests, beliefs, or needs that result in tension or disagreement.

Expressed Struggle

Involves the outward manifestation or communication of hardship, disagreement, or conflict between individuals or groups.

Independence

The state or condition of being free from dependence, control, or influence of another or others.

Destructive Conflict

Conflict that escalates to a point where it causes harm, disrupts relationships, and prevents resolution, often leading to long-term negative consequences.