With no other positions, an investor sells short $100$ XYZ at $$40$ and sells $1$ XYZ Oct $40$ put at $$5.$ If the put is exercised when the market price of the stock is $$35$ and the stock is used to cover the short position, what would the investor's profit or loss be$?$

$$500$ loss

$$500$ profit

$$0$ profit

$$1,000$ profit

I don't know