If You Took a Short Position in Two S&P 500

question 48

Multiple Choice

If you took a short position in two S&P 500 futures contracts at a price of 1,510 and closed the position when the index futures was 1,492, you incurred

• A)a gain of $9,000.
• B)a loss of $9,000.
• C)a loss of $18,000.
• D)a gain of $18,000.

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Definitions:

Valid Consideration

Valid consideration in a contract represents something of value that is given by all parties involved, serving as the reason or inducement to enter into the contract.

Adequacy Of Consideration

Refers to the fairness of the bargain in a contract, ensuring that what is exchanged holds reasonable value.

Detriment

A loss or harm suffered as a result of an action or decision.

Illusory Promise

A statement or promise that is vague or lacks commitment and does not legally bind the person making it.