Today is 11 June 2021, you are managing a portfolio which mirrors a particular index and has a current value of $5,400. Additionally, today you enter in a short futures contract on the same index maturing January 2021, the futures price today is $5,550.Suppose on 01 August 2021 you decide to close out your futures position at a price of $5,200. On the same day you sell your portfolio at a market value of $5,120. Select the true statement.

a.

You lose $350 on the index, gain $280 on the futures contract, netting a loss of $70

b.

You gain $280 on the index, lose $350 on the futures contract, netting a loss of $70

c.

You gain $350 on the index, lose $280 on the futures contract, netting a gain of $70

d.

You lose $280 on the index, gain $350 on the futures contract, netting a gain of $70.