USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 20

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. What is Sarah's annualized gain/loss?

• A) 60.60 percent gain
• B) 6.06 percent loss
• C) 60.60 percent loss
• D) 6.06 percent gain
• E) 0 percent

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Definitions:

Small Talk

Casual or informal conversation about minor or mundane topics.

Nutrition Counseling

The process where a health professional provides advice and guidance on diet and eating habits for health improvement.

Raise Awareness

Efforts directed at increasing the public's knowledge about and sensitivity to a particular issue or cause.

Diabetes

A chronic condition characterized by elevated levels of glucose in the blood due to the body's inability to produce or effectively use insulin.