On April 1, you bought one S&P 500 Index futures contract at a futures price of 1,550. If, on June 15, the futures price was 1,612, what would be your profit (loss) if you closed your position (without considering transactions costs)?
A) $1,550 loss
B) $15,550 loss
C) $15,550 profit
D) $1,550 profit

Question

Quizplus · Accepted Answer

The profit from the futures contract is calculated by taking the difference between the selling price and the buying price, then multiplying by the contract multiplier (which is typically $250 for S&P 500 Index futures). Therefore, the profit is (1,612 - 1,550) * $250 = 62 * $250 = $15,550.

On April 1, You Bought One S&P 500 Index Futures