A speculator buys a put option on British pounds with a strike price of $2 that costs $0.30 per option. A pound option contract represents 31,250 options. Assume that at the time of the purchase, the spot rate of the pound is $2 and continually rises to $2.20 by the expiration date. As an informed investor, if the contract is held unitl maturity, the total profit or loss is:

Select one:

a.-$0.30

b.-$1,562.50

c.$31,250

d.-$9,375