A Bank Makes a $5 Million 180-Day Pure Discount Loan

A bank makes a $5 million 180-day pure discount loan at LIBOR of 9 percent.At the same time,however,it exercises an interest rate put that has a strike of 11 percent.Find the annualized rate of return on the loan.Ignore the cost of the put.

A) 9.34 percent
B) 11.47 percent
C) 9 percent
D) 11 percent
E) none of the above