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

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) 60.60% gain
B) 6.06% loss
C) 60.60% loss
D) 6.06% gain
E) None of the above