On January 1,you sold one April S&P/TSX 60 index futures contract at a futures price of 840.If on February 1 the April futures price is 850,what would be your profit (loss)if you closed your position (without considering transactions costs)?

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Quizplus · Accepted Answer

The profit or loss on a futures contract is calculated by the difference in the futures price multiplied by the contract size. Here, the price increased from 840 to 850, resulting in a loss. The contract size for S&P/TSX 60 is typically $200 per point, so the loss is (850 - 840) * $200 = $2,000.

On January 1,you Sold One April S&P/TSX 60 Index Futures