USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 8

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Sarah Kling bought a six-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 14.3. 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) $0

---

Definitions:

Amphetamine

A stimulating drug that increases the activity of certain neurotransmitters in the brain, commonly used to treat ADHD and narcolepsy.

Heart Rate

The speed at which the heart beats, typically expressed as beats per minute (bpm).

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for health assessment.

Dopamine

A neurotransmitter involved in the regulation of movement, emotion, cognition, motivation, and feelings of pleasure.