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Exhibit 14.3 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Sarah Kling bought a six-month Peppy Cola put option with an exercise price of $55
Exhibit 14.3 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Sarah Kling bought a six-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 14.3. What is Sarah's annualized gain/loss?
a. 0 percent
b. 6.06 percent loss
c. 60.60 percent gain
d. 60.60 percent loss
e. 6.06 percent gain
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