Suppose a Share Has a Flat Fundamental Value of $7

Multiple Choice

Suppose a share has a flat fundamental value of $7. Currently the share is trading at $17.50 per share. You enter into a contract with another trader that once the last trading period ends you will sell 100 shares to this other trader for $10.50 per share. But, by the last market period the share is trading at $13.50 per share. This implies that in this case:

A) You will make a profit of $300.
B) You will make a profit of $350.
C) You will have to renege on your promise to sell since the market price is above $10.50.
D) You will make a loss of $300.