USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 68

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 $42.00, what is Sarah's dollar gain or loss?

• A) $420 gain
• B) $420 loss
• C) $475 loss
• D) $475 gain
• E) $525 gain

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Definitions:

Strategic Objectives

Long-term organizational goals that help make a strategy successful.

Employee Skills

The abilities and expertise that employees possess, which enable them to perform tasks and solve problems in the workplace.

HR Continuum

A conceptual framework in human resources management that outlines the progression or range of HR activities from strategic to operational functions.

Emotionally Expressive

The extent to which an individual outwardly conveys their emotions in a visible and detectable manner.