On January 1,you sold one April S&P 500 index futures contract at a futures price of 420.If on February 1 the April futures price were 430,what would be your profit (loss)if you closed your position (without considering transactions costs)?

Question

Quizplus · Accepted Answer

The futures price increased from 420 to 430, resulting in a loss. Each point in the S&P 500 futures contract is typically worth $250, so a 10-point increase results in a $2,500 loss (10 points x $250).

On January 1,you Sold One April S&P 500 Index Futures