If you buy in April a stock index future contract on the S&P 500 index at the price of 1050 points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at 1047, you have a ________ of $________.
A)loss; 750
B)loss; 3
C)profit; 750
D)profit; 3

Question

Quizplus · Accepted Answer

The loss is calculated as the difference between the purchase price and the maturity price, multiplied by the contract multiplier (usually $250 for S&P 500 futures). The loss is (1050 - 1047) * 250 = $750.

If You Buy in April a Stock Index Future Contract