Dunder Mifflin just completed its IPO on the NYSE. Dunder Mifflin sold 100,000 shares of stock at an offer price of $10.50 with an underwriting discount of $0.50 per share. Dunder Mifflin's closing stock price on the first day of trading on the secondary market was $12.50, and 150,000 shares were outstanding. What is the IPO underpricing for the company?

Select one:

a. 19.05%

b. 20%

c. 25%

d. 4%

e. 4.76%