The value of an S&P 500 futures contract is $250 times the index. Assume the futures price on the S&P 500 index is 2400 at the time of purchase. If the index price is 2560 when the position is closed out, the gain is

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Quizplus · Accepted Answer

The gain on the futures contract can be calculated by the difference in the index price multiplied by the contract multiplier. The difference in the index price is 2560 - 2400 = 160. The contract value is $250 times the index, so the gain is 160 * $250 = $40,000.

The Value of an S&P 500 Futures Contract Is $250