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 $915.The annual rate of interest on treasuries is 2.4% (0.2% per month) .The premium on the long put,with an exercise price of $930,is $8.00.Calculate the profit or loss to the short put position if the final index price is $915.

A) $15.00 gain
B) $15.00 loss
C) $6.95 gain
D) $6.95 loss