On 10/01/2017 Tina bought a call option for 100 shares on The Coca Cola Company (KO) for a $200 premium, with an exercise price of $42.00/share, and an expiration of 04/01/2018. On 11/01/2018 the price of KO was $44.00/share. Tina decided not to exercise the option for the hope of a higher price.

A. What would have been Tina's holding period return? (2 points)

B. What would her annualized rate of return have been? (3 points)

C. Tina was pleasantly surprised, in mid April she saw the price per share of KO was $54.00. She decided to exercise her option. What is her holding period return? (5 points EC)