$4$

$1$ point

Suppose an investor purchases a Treasury bond priced at $$100$ and wants protection against a rise in yields. The investor purchases a put option on the bond for $$1,$ which has a strike price of $$98.$ If yields subsequently rise and lower the price of the bond to $$90,$ what is the investor's dollar loss given her position in the put option, and what is the investor's dollar loss without the put option?

$-$$$3$;$-$$$8$

$-$$$5$;$-$$$10$

$-$$$3$;$-$$$10$

$-$$$5$;$-$$$8$