Julie purchased five (5) S&P 500 index futures at a price of 1392. The contract size is $250 times the index value. The futures are maturing today at a price of 1387.50. What is the amount of her profit or loss?
A) -$3,125
B) -$4,650
C) -$5,625
D) -$13,575
E) -$15,625

Question

Quizplus · Accepted Answer

Julie bought the futures at 1392 and they matured at 1387.50, resulting in a loss of 4.5 points per contract. With a contract size of $250, the loss per contract is 4.5 * $250 = $1,125. For five contracts, the total loss is 5 * $1,125 = $5,625.

Julie Purchased Five (5) S&P 500 Index Futures at a Price