Gamestop Inc. (NYSE: GME) operates chain of brick & mortar stores selling video games. With the advent of high-speed internet, you are convinced that online purchasing will drive GME out of business. To profit from your prediction, you are trying to choose between short selling GME shares or buying put options. The stock price is currently $20. If you short sell, then your broker requires you to deposit 50% margin into your brokerage account. So if you sell 100 shares, you will need to deposit $1,000. The put option expires in three months, has a strike price of $20, and has a premium of $2 (per share). Assume that the stock price falls to $15. What is the rate of return on each investment? (Option return, stock return.)

a. 233%, 100%

b. 150%, 67%

c. 150%, 50%

d. 250%, 25%