Steve Bought 300 Shares at a Price of $20 Per

Multiple Choice

Steve bought 300 shares at a price of $20 per share. The price then went up to $33 per share so Steve decided to hedge his position by purchasing 3 puts at a cost of $120 each. The puts have an exercise price of 30. One week prior to the expiration of the puts, the price was at $22 per share. If Steve closed out all of his positions at that time, he would have earned a net profit of

A) $200.
B) $240.
C) $3,000.
D) $2,640.