For a 75-point drop in the S&P500,by how much does the futures position change?
A)$200,000
B)$50,000
C)$250,000
D)$500,000
E)$18,750

Name: For a 75-point drop in the S&P500,by how much does the futures position change? A)$200,000 B)$50,000 C)$250,000 D)$500,000 E)$18,750
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Question

Quizplus · Accepted Answer

The futures position changes by $18,750 for each point drop in the S&P500. Therefore, for a 75-point drop, the futures position changes by $18,750 * 75 = $1,406,250.

For a 75-Point Drop in the S&P500,by How Much Does