On January 1, you sold one April S&P 500 Index futures contract at a futures price of 3,420. If, on February 1, the April futures price was 3,430, what would be your profit (loss) if you closed your position (without considering transactions costs)?

Question

Quizplus · Accepted Answer

The profit or loss from a futures contract is calculated by the difference in the sell and buy prices times the contract multiplier. For the S&P 500 Index futures, the contract multiplier is usually $250 per index point. Selling at 3,420 and buying back at 3,430 results in a 10 point loss. Therefore, the loss is 10 points * $250 = $2,500.

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