4. Purdue Savings and Loan Association purchased a put option on Treasury bill futures with a September delivery date and an exercise price of 91-16. Assume the put option has a premium of 1-32. Assume that the price of the Treasury bond futures decreases to 88-16. Should Purdue exercise the option or let the option expire? What is Purdue's net gain or loss after accounting for the premium paid on the option?