Exhibit 13-5 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 141

Multiple Choice

Exhibit 13-5
USE THE FOLLOWING INFORMATION FOR THE NEXT 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 13-5. What is Sarah's annualized gain/loss?

• A) 11.51% gain
• B) 115.15% gain
• C) 11.51% loss
• D) 115.15% loss
• E) None of the above

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