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:
A)a loss of $1,500.
B)a gain of $1,500.
C)a loss of $750.
D)a gain of $750.
E)none of the above.

Question

Quizplus · Accepted Answer

The gain is calculated as the difference between the selling price and the closing price, multiplied by the contract multiplier (usually $250 for S&P 500 futures). The difference is 950 - 947 = 3 points. Thus, the gain is 3 * $250 = $750.

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