The Spot Price of the Market Index Is $900

Multiple Choice

The spot price of the market index is $900. After 3 months the market index is priced at $920. The annual rate of interest on treasuries is 4.8% (0.4% per month) . The premium on the long put, with an exercise price of $930, is $8.00. What is the profit or loss at expiration for the long put?

A) $2.00 gain
B) $2.00 loss
C) $1.90 gain
D) $1.90 loss