Suppose an investor buys (takes a long position in) an S&P 500 futures contract at 1000 and sells it at 1100. What profit does this investor realize if the multiple is $200?

Question

Quizplus · Accepted Answer

The profit is calculated by taking the difference between the selling price and the buying price, then multiplying by the contract multiple. Here, (1100 - 1000) * $200 = $20,000.

Suppose an Investor Buys (Takes a Long Position In) an S&P