Suppose you short$-$sell a stock $($which pays no dividends$)$ for $$53$ and buy a $$55-$strike call option for $$8\mathrm{.}20.$ Assuming the effective annual interest rate is $4\%,$ what is the profit on your position if the stock is worth $$34\mathrm{.}98$ when the option expires?

$$9\mathrm{.}82$

$$20\mathrm{.}14$

$$-8\mathrm{.}41$

$$11\mathrm{.}61$ Correct

$$12\mathrm{.}67$