The settlement price on the Sep T-bond futures contract is 110-24. The price of the cheapest-to-deliver bond is 131-05, its conversion factor is 1.09 and its accrued interest is $1.20. Which of the following statements is correct?

	The Long pays $121,920 to the Short position
	The Long pays $123,920 to the Short position
	The Short pays $135,450 to the Long position
	The Short pays $121,920 to the Long position
	The Long pays $135,450 to the Short position
	The Short pays $123,920 to the Long position