If you took a short position in two S&P 500 futures contracts at a price of 1,510 and closed the position when the index futures was 1,492, you incurred
A)a gain of $9,000.
B)a loss of $9,000.
C)a loss of $18,000.
D)a gain of $18,000.

Question

Quizplus · Accepted Answer

In a short position, you profit when the price decreases. Each S&P 500 futures contract represents $250 times the index. The price moved from 1,510 to 1,492, a decrease of 18 points. For two contracts, the gain is 18 points * $250 * 2 = $9,000.

If You Took a Short Position in Two S&P 500