You sold S&P 500 Index futures contract at a price of 950 and closed your position when the index futures was 947,you incurred:

Question

Quizplus · Accepted Answer

To calculate the profit or loss on a futures contract, we need to use the formula: 
Profit/Loss = (Buy Price - Sell Price) x Contract Size

In this case, since you sold the futures contract, the contract size would be negative. Therefore, the calculation would be: 
Profit/Loss = (950 - 947) x (-250) = -750

Since the result is negative, it means that you incurred a loss. Therefore, the correct answer is D) a gain of $750.

You Sold S&P 500 Index Futures Contract at a Price