Exhibit 20.5 Use the Information Below for the Following Problem(S)

Multiple Choice

Exhibit 20.5
Use the Information Below for the Following 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 20.5.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