On January 1,you sold one April S&P 500 index futures contract at a futures price of 1300.If the April futures price is 1250 on February 1,your profit would be __________ if you close your position.(The contract multiplier is 250.)

Question

Quizplus · Accepted Answer

To calculate the profit or loss, we need to take the difference between the initial selling price and the closing price and multiply it by the contract multiplier of 250. 
Profit/Loss = (Selling Price - Closing Price) x Contract Multiplier 
Profit/Loss = (1300 - 1250) x 250 = 12,500 
Since the futures price decreased, the profit is positive, and the correct answer is D) $12,500.

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