Reese Insurance Company Sold a Call Option on Interest Rate

Reese Insurance company sold a call option on interest rate futures with an exercise price of 92-10. The premium on the call option is 2-24. Just before the expiration date, the price of Treasury bond futures (which will have a face value at maturity of $100,000) is 97-14. At this time, the option was exercised as the buyer closed out the position by selling an identical futures contract. Reese's net gain from selling the call option is $____.

A) 2,687.50
B) - 2,687.50
C) 2,375.00
D) 7,437.50
E) None of these are correct.