A trader enters into a 1-year short futures contract on a non- dividend paying stock when the stock price is $40 and the risk- free rate of interest is 10% per annum with continuous compounding. Six months later, the price of the underlying stock drops to $35 and the risk free interest rate is still 10%. What will happen to this trader? A loss of $5 O O O O A gain of $2.95 A gain of $5 A loss of $2.95