You took a short position in three S&P 500 futures contracts at a price of 900 and closed the position when the index futures was 885,you incurred:
A)a gain of $11,250.
B)a loss of $11,250.
C)a loss of $8,000.
D)a gain of $8,000.
E)none of the above.

Question

Quizplus · Accepted Answer

The gain is calculated as (900 - 885) * 250 * 3 = $11,250, since you profit from a decrease in the futures price when holding a short position.

You Took a Short Position in Three S&P 500 Futures