You Lend $2,000 at 12% Per Year for Three Months

Multiple Choice

You lend $2,000 at 12% per year for three months and proceed to short sell Asset XYZ for $2,000 in the cash market. You are required to pay $200 to the lender of Asset XYZ (which is the proceeds the lender would have received) . You then immediately buy a futures contract at $1,850 for delivery of asset XYZ in three months (this will cover your short position) . What is the net profit or loss from your strategy of lending money, short selling, and buying the futures contract?

A) $30
B) $20
C) $10
D) $0