Marcia buys an S&P 500 futures contract with a September settlement date when the index is 1,750. By the settlement date, the S&P 500 index falls to 1,400. The return on Marcia's position in the S&P 500 futures contract is ____ percent.

Question

Quizplus · Accepted Answer

The return is calculated as (Final Index - Initial Index) / Initial Index = (1400 - 1750) / 1750 = -0.20 or -20%.

Marcia Buys an S&P 500 Futures Contract with a September