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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Definitions:

Neo-Freudian Psychologist

A psychologist who builds upon Sigmund Freud's psychoanalytic theories, often emphasizing social and cultural factors.

Drew Westen

An American psychologist and neuroscientist known for his work on personality psychology, political psychology, and the neural bases of emotion.

Psychoanalytic

Related to the psychological theory and therapy developed by Sigmund Freud, focusing on unconscious processes influencing behavior.

Object Relations Theory

A psychoanalytic theory focusing on relationships, suggesting that the ego-self exists in relation to other objects, including real and imagined people, as well as the outside world.