The price of an S&P 500 Index futures contract is $988.26 when you decide to enter a long position.When the position is closed the futures price is $930.32.If there are no settlement requirements,what is your dollar gain or loss? (Ignore opportunity costs.)
A) $14,485 loss
B) $14,485 gain
C) $57.94 loss
D) $57.94 gain

Question

Quizplus · Accepted Answer

The loss is calculated by subtracting the closing price from the opening price: $988.26 - $930.32 = $57.94. However, since S&P 500 futures contracts are based on a multiplier (usually $250 per point), the actual loss is $57.94 multiplied by $250, which equals $14,485.

The Price of an S&P 500 Index Futures Contract Is