You purchased six DJIA index futures at a price of 20,342. The contract size is $10 times the level of the index. The futures are maturing today when the price is 20,129. What is the amount of your profit or loss?
A)−$12,780
B)−$1,278
C)−$12,720
D)$1,278
E)$12,780

Question

Quizplus · Accepted Answer

The loss per contract is calculated as the difference between the purchase price and the selling price, multiplied by the contract size. Here, it is (20,342 - 20,129) * $10 = 213 * $10 = $2,130 per contract. For six contracts, the total loss is 6 * $2,130 = $12,780.

You Purchased Six DJIA Index Futures at a Price of 20,342