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22) For $3.5 you could buy a 5-month put option giving you the right to sell 1 share of Delta Company's stock at a price

22) For $3.5 you could buy a 5-month put option giving you the right to sell 1 share of Delta Company's stock at a price of $73.6 per share. Suppose you believe that the stock price is going to decline from its current level of $76.1 sometime during the next 5 months. If you bought this option today and excise the option at the time the stock price drops to $71, what would your holding-period return be?

a.45.71%

b.25.71%

c.-28.57%

d.-25.71%

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