Stephen sold short 1,000 shares of SMT Inc. at $45 a share. He closed the position when SMT was trading at $35 a share. While he held the short position, a dividend was paid by SMT of $1.50 per share. What was Stephen's total pre-tax profit or loss?

a) $10,000 profit

b) $11,500 loss

c) $10,000 loss

d) $8,500 profit