It is August 20, and you are trying to calculate the cost of delivering bond X that can be delivered on the December Treasury bond futures contract. The futures price is 89.375. Assume that delivery will be made on December 14 and the contract size is $100,000. Use 6.9% as the repo rate. Days between 11/15 and 12/14 is 29. Days between 8/20 and 12/14 is 116. Below is the information about the Bond X.

Bond X: A 9% noncallable bond maturing in about 28 years with a price of 100 14/32 and a CF of 1.10. Coupons are paid on November 15 and May 15. The accrued interest is 2.37 on August 20 and 0.72 on December 14. Assume the bond has a par value of $100,000.

What is the cost of delivering Bond X?

Group of answer choices

-$814.90

-$1267.27

-$978.154

-$1454.43