You work for a Mutual Fund investing in Mortgage Bonds, and you charge your clients on a traditional 40bps per Assets Under Management fee structure.

As you should know there has been a large increase of interest rates this year

Which is the MOST PROBABLE situation as of 10/31 of an investor that had $100M in your fund in January?

a. Her investment in your Fund is probably worth more than in January, and she has paid you somewhere around $350k in fees so far this year.

b. Her investment in your Fund is probably worth more than in January, and she has paid you somewhere around $3.50M in fees so far this year.

c. Her investment in your Fund is probably worth less than in January, and she has paid you somewhere around $350k in fees so far this year.

d. Her investment in your Fund is probably worth less than in January, and she has paid you somewhere around $3.5M in fees so far this year.