Stock index Y is currently priced at $25/unit. The index pays dividends continuously at a rate proportional to its price at a constant rate of 3%. An investor purchases 200 units of the stock index...

Extracted text: Stock index Y is currently priced at $25/unit. The index pays dividends continuously at a rate proportional to its price at a constant rate of 3%. An investor purchases 200 units of the stock index and invests all dividends in the index. The continuously compounded risk-free interest rate is 5%. After four months the investor closes out all positions when the index is priced at $25.90. Calculate the four-month profit.