Suppose that it is 20 April and a lender realises that on 14 September it will have $5 million to invest for a period of 180 days. The lender is concerned that the Reserve Bank of Australia will lower interest rates before 14 September. 90 Day BAB futures deliverables on 14 September are currently quoted at 95.50. What is the dollar gain or loss on your hedging strategy if the 90-day BAB futures settlement rate is 96.05 at the expiry of the futures contract on 14 September?

Group of answer choices

A. Profit of $13283

B. Profit of $6642

C. Loss of $6642

D. Loss of $13283