Assume Lubys Inc. sells 5 crude oil futures contracts on May 3. The futures price is $60.02 per barrel and the contract size is 1,000 barrels per contract. The company sets up a margin account with initial margin of $9,788 per contract and maintenance margin of $7,250 per contract. The prices of the crude oil futures contracts vary as shown below.

On May 4, the futures price is $59.89 per barrel.

On May 5, the futures price is $61.14 per barrel

On May 6, the futures price is $62.78 per barrel

On May 7, the futures price is $61.92 per barrel

What is the gain on the short position on May 4?

A.

-$650

B.

$650

C.

-$580

D.

$580