On April 1,you sold one S&P 500 index futures contract at a futures price of 950.If on June 15^th the futures price were 1012,what would be your profit (loss)if you closed your position (without considering transactions costs)?

Question

Quizplus · Accepted Answer

To calculate the profit or loss, we need to first determine the price difference between the two dates:

1012 - 950 = 62

Since the contract was sold, we need to subtract this price difference from the initial futures price:

950 - 62 = 888

Therefore, if the position was closed on June 15, the profit or loss would be:

Profit or Loss = (Initial Futures Price - Final Futures Price) x Contract Size
Profit or Loss = (950 - 1012) x $250
Profit or Loss = -$15,500

Since the result is negative, this represents a loss of $15,500. Therefore, the correct answer is B) $15,550 loss.

On April 1,you Sold One S&P 500 Index Futures Contract