The Spot Price of the Market Index Is $900

Multiple Choice

The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The market index rises to $920 by the expiration date. The annual rate of interest on treasuries is 4.8% (0.4% per month) . What is the difference in the payoffs between a long index investment and a long forward contract investment? (Assume monthly compounding.)

A) $10.84
B) $19.16
C) $26.40
D) $43.20