If You Sold an S&P 500 Index Futures Contract at a Price

question 2

Multiple Choice

If you sold an S&P 500 Index futures contract at a price of 950 and closed your position when the index futures was 947, you incurred

• A)a loss of $1,500.
• B)a gain of $1,500.
• C)a loss of $750.
• D)a gain of $750.

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Definitions:

Financial Aid

Money that is made available to students to help pay for their education expenses; it can come in the form of scholarships, grants, loans, and work-study programs.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay or other distinguishing factors.

Arbitrage

The practice of buying and selling the same assets in different markets to take advantage of differing prices for the same asset.

Antitrust Laws

Legislation enacted to prevent monopolies or unfair business practices that restrict free competition, thereby protecting consumers and ensuring a fair market environment.